The Central Bank of Nigeria (CBN) has directed banks to pay at least 4.65 per cent interest on savings deposit accounts.
This is an increase from the earlier 4.2 percent.
Savings deposit rates are rates banks pay customers who operate savings accounts.
The increase follows a 150 basis point increase in monetary policy rates from 14 percent to15.5 percent, which was announced on Tuesday at the end of the Monetary Policy Committee (MPC) meeting.
Recall that in August, the apex bank increased the negotiable minimum interest rate on local currency savings deposits from 10 percent to 30 per cent.
It is expected that the increase in the interest rate on savings deposits will mop up liquidity as savings will increase.