CBN lifts suspension on bank borrowing, sets 31.75% lending rate

The Central Bank of Nigeria (CBN) has lifted its suspension on bank borrowing from its Standing Lending Facility (SLF).

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Following the 296th Monetary Policy Committee (MPC) meeting, the apex bank has set the lending rate at 31.75 per cent.

Omolara Duke, Director of the Financial Markets Department, announced on August 26, 2024, that the MPC adjusted the upper corridor of the standing facilities to 5.00 per cent from 1.00 per cent around the Monetary Policy Rate (MPR).

The suspension of the SLF is now lifted, and authorized dealers can submit their SLF requests through the Secured Securities Settlement System (S4) between 5 p.m. and 6:30 p.m.

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Dealers can access the SLF at the new rate of 31.75 per cent. Additionally, they can use the Intraday Liquidity Facility (ILF) to avoid system gridlock at no cost if repaid the same day.

A 5 per cent penalty remains for those who do not settle their ILF, which will convert to SLF at a rate of 36.75 per cent. Collateral execution, as outlined in the approved repo guidelines, has been reintroduced.

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