The Central Bank of Nigeria (CBN) has lifted its suspension on lending to banks through the Standing Lending Facility (SLF) and set the interest rate at 31.75%.
In addition, commercial and merchant banks will now earn a 19% interest rate on deposits exceeding N3 billion in the Standing Deposit Facility (SDF).
Dr. Omolara Duke, Director of the Financial Market Department, issued the announcement in a circular. The decision follows the Monetary Policy Committee’s (MPC) adjustment of the upper corridor of standing facilities to 5.00% from 1.00% around the Monetary Policy Rate (MPR) during its 296th meeting.
The CBN stated: “The MPC adjusted the upper corridor of the standing facilities to 5.00% from 1.00% around the MPR. Consequently, the suspension of the SLF is lifted, and Authorized Dealers can submit their SLF requests via the Scripless Securities Settlement System (S4) from 5:00pm to 6:30pm.”
Authorized Dealers can access the SLF at the new rate of 31.75% and use the Intraday Lending Facility (ILF) to avoid system gridlock at no cost if repaid on the same day. A 5.00% penalty for non-settlement of ILF will be retained, and if not repaid, the amount will be converted to SLF at 36.75%.