Nigeria’s central bank exempted mortgage banks and certain microfinance lenders from cash withdrawal limits and penalties as it aims to boost credit for poorer borrowers.
(Bloomberg) — Nigeria’s central bank exempted mortgage banks and certain microfinance lenders from cash withdrawal limits and penalties as it aims to boost credit for poorer borrowers.
The exception is targeted at organizations lending to the “economically active poor,” the Abuja-based Central Bank of Nigeria said in a statement on its website. It aims to “enable them continue to play their expected role in the economy and provide specialized retail banking services to customers.”
The West African nation in December limited cash withdrawals by corporate organizations from banks to five million naira ($6,536) a week and imposed a processing fee of 5% where the cash must be withdrawn. The rule, which aimed to encourage digital payments at the time, also imposed a weekly withdrawal limit of 500,000 naira on individuals.
The government of President Bola Tinubu, who took office in May, is seeking to deliver cheap credits to businesses to stimulate economic growth. The administration’s reforms have included ending a gasoline subsidy that cost $10 billion last year and easing foreign-exchange controls.
Read more: Nigeria’s Tinubu Unveils Broad Plan to Ease Cost of Living Pain
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