CBN LIFTS SUSPENSION ON BANK BORROWING, PEGS LENDING RATE AT 31.75%

August 28, 2024

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The Central Bank of Nigeria (CBN) has lifted its suspension on banks borrowing from its window, known as the Standing Lending Facility (SLF).

The apex bank also pegged the lending rate at 31.75 percent sequel to the decisions made at the 296th meeting of the Monetary Policy Committee (MPC) of the bank.

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.