The Central Bank of Nigeria (CBN) has mandated deposit money banks to pay an interest rate of at least 4.2 per cent on savings deposit accounts.
This shows an increase from the 1.4 percent previously paid.
The hike, which is with effect from August 1, according to the CBN, is in the light of the return to complete normalcy after taking into account the current macroeconomic conditions.
In a circular dated August 15, 2022, titled “Review Of Interest Rate On Savings Deposits” and signed by Haruna B. Mustafa, Director Of Banking Supervision, the apex bank recalled that as part of efforts to ameliorate the impact of the COVID 19 pandemic, it had reduced the minimum interest rates payable on local currency savings deposits from 30 per cent to 10 percent of the Monetary Policy Rate (MPR).
It said the reduction was aimed at stimulating growth in the larger economy following the economic-slowdown occasioned by the pandemic.
The apex bank further noted that Nigeria had since returned to economic normalcy, and “following the return to full normalcy and considering the prevailing macroeconomic conditions, it has become necessary to effect an upward adjustment of the interest rate payable on local currency savings deposits.”
“Accordingly, effective August 1, 2022, the negotiable minimum interest rate on local currency savings deposits shall be 30% of MPR. This supersedes our letter dated BSD/DIR/GEN/LAB/13/052 on the subject. September 1, 2020,” the CBN said.
