CBN Lifts Suspension On Bank Borrowing, Sets 31.75% Lending Rate

CBN Lifts Suspension On Bank Borrowing, Sets 31.75% Lending Rate
The apex bank pegged the lending rate at 31.75 percent sequel to the decisions made at the 296th Monetary Policy Committee (MPC) meeting.

Director of Financial Markets Department, Omolara Duke, in a statement, dated August 26, 2024, said, “The Monetary Policy Committee (MPC) adjusted the upper corridor of the standing facilities to 5.00 per cent from 1.00 per cent around the MPR, at its 296th meeting.

“Consequently, the suspension of the Standing Lending Facility (SLF) is hereby lifted and Authorised Dealers should send their request for SLF through the Sceipless Securities Settlement System (S4) within the operating hours of 5pm to 6.30pm.”

Duke said authorised dealers are now permitted to access the SLF at 31.75%, and access ILF to avoid system gridlock at no cost if repaid the same day.

She added that the 5% penalty is retained, for participants that do not settle their ILF, which the system will convert to SLF at 36.75%, collateral execution (the rediscounting of instruments pledged by participants at the penal rate by CBN) is reintroduced as stipulated in the approved repo guidelines.