The Central Bank of Nigeria (CBN) has increased the rates for Standing Deposit Facility (SDF).
This decision was detailed in a circular issued on August 26, 2024, following the 296th Monetary Policy Committee (MPC) meeting, where key adjustments to interest rate policies were approved.
It said the raising of the rate is part of ongoing efforts to manage liquidity in the financial system.
The CBN revised the Asymmetric Corridor around the Monetary Policy Rate (MPR) from +100/-300 basis points (bps) to +500/-100 bps, as a measure to discourage banks from holding excess liquidity at the central bank and to promote increased lending activities.
The Standing Lending Facility (SLF) rate, which banks use to borrow short-term funds from the CBN, has been raised to 31.75 per cent.
The SDF rate, applicable to deposits made by banks at the CBN, has been increased to 25.75 per cent.
The circular further specifies that Commercial and Merchant Banks will receive 25.75% on deposits up to ₦3.00 billion, while deposits exceeding this amount will attract a lower rate of 19.00 per cent.
It said Payment Service Banks will receive 25.75 per cent on deposits up to N1.50 billion, with amounts above this threshold earning 19.00 per cent.
The circular said the new rates are effective immediately, with all authorised dealers expected to adhere to the updated guidelines.
