CBN Announces New Rates for Access Bank, UBA, GTbank, Zenith, Other Banks

• The Central Bank of Nigeria has announced new lending rates for commercial, merchant, and payment banks
• CBN gives loans to banks using the Standing Lending Facility (SLF) and deposits from banks using the Standing Deposit Facility (SDF)
• The new rates are part of CBN's ongoing efforts to manage liquidity and stabilise the banking sector amidst evolving economic conditions

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria (CBN) has resumed lending to banks through the Standing Lending Facility (SLF).

The apex bank, in a new circular signed by Omolara Duke, Director of the Financial Market Department, pegged the new lending rate at 31.75%.

A Standing Lending Facility (SLF) is a process that allows banks to borrow money from a central bank, such as the CBN, on an overnight basis. The SLF is a way for the central bank to make liquidity available to banks.

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CBN circular reads:

“The MPC has adjusted the upper corridor of the standing facilities to 5.00 percent around the MPR.

"Consequently, the suspension of the SLF is lifted. Authorised Dealers may now request SLF through the Scripless Securities Settlement System (S4) during operating hours from 5:00 pm to 6:30 pm.

"The SLF will be accessible at 31.75 percent. For the Intraday Lending Facility (ILF), there will be no cost if repaid on the same day, but a 5.00 percent penalty will apply for late settlements, which will be converted to SLF at 36.75 percent.”

Standing Deposit Facility

The CBN also make changes to the Standing Deposit Facility (SDF). A financial tool that allows banks to deposit excess liquidity with the CBN and earn interest.

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According to the apex bank, commercial and merchant banks will now earn a 19% interest rate on deposits exceeding N3 billion under the Standing Deposit Facility (SDF).

Regarding the SDF, the CBN’s circular states:

“In line with sections 12 and 30 of the CBN Act 2007, and following the MPC's adjustment of the Asymmetric Corridor to +500/-100 basis points from +100/-300 basis points around the MPR, the Standing Deposit Facility rate has been set at 25.75 percent for deposits up to N3 billion. For deposits exceeding this threshold, a 19 percent rate will apply.”

For Payment Service Banks, the new rates will be 25.75% for deposits up to N1.50 billion and 19% for any excess deposits above this amount.

Expert speaks as CBN raises interest rate again

Legit.ng reported that the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) has increased the benchmark interest rate to 26.25% from 24.75%.

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The new rate is a 150 basis point increase from the previous rate and the third consecutive hike implemented in 2024 by the CBN to fight inflation.

Olayemi Cardoso, the CBN Governor and MPC Chairman, disclosed the new interest rate at the end of the 295th MPC meeting held in Abuja.

Source: Legit.ng