The Central Bank of Nigeria (CBN) has lifted the suspension of the Standing Lending Facility (SLF) for banks and established interest rates on their deposits, ranging from 19% to 25.75%. This decision follows the adjustment of the asymmetric corridor at the recent Monetary Policy Committee (MPC) meeting.
According to a circular issued to authorized dealers, the interest rate on deposits will be tiered based on the amount deposited. Commercial and merchant banks will earn up to 25.75% interest on deposits up to N3 billion, while deposits above N3 billion will attract a 19% interest rate. Payment Service Banks (PSBs) will earn 25.75% interest on deposits up to N1.5 billion and 19% on deposits above N1.5 billion.
The CBN has also permitted banks to borrow from it through the SLF window at 31.75% and access the Intraday Lending Facility (ILF) at no cost if repaid the same day. However, a 5% penalty will be applied if the ILF is not settled the same day, and the system will convert it to SLF at 36.75%.
The circular outlines the terms and conditions for the reinstated SLF and ILF, including collateral execution and rediscounting of instruments pledged by participants at the penal rate.
