The Central Bank of Nigeria (CBN) has lifted the suspension on the Standing Lending Facility (SLF), allowing banks to borrow at an interest rate of 31.75% to manage short-term liquidity needs.
The move follows decisions by the Monetary Policy Committee (MPC) to adjust monetary policies in response to inflation.
The CBN also introduced new guidelines, including a free Intraday Liquidity Facility (ILF) if funds are repaid within the same day, and a 5% penalty for late settlements, which will be converted to SLF at a higher rate of 36.75%. Banks are required to submit SLF requests within a specific time frame.
Additionally, the CBN has adjusted the Standing Deposit Facility (SDF) rate to 25.75% for deposits, with varying rates for different types of banks.
These changes aim to balance economic growth with inflation control, leading to tighter liquidity conditions in the banking sector.