The Central Bank of Nigeria (CBN) has reinstated access to its Standing Lending Facility (SLF) following the recent 296th Monetary Policy Committee (MPC) meeting.
The apex bank has set the lending rate at 31.75 per cent, marking a significant update in its monetary policy framework.
Omolara Duke, Director of the Financial Markets Department, announced on August 26, 2024, that the MPC adjusted the upper corridor of the standing facilities to 5.00 per cent, up from the previous 1.00 per cent around the Monetary Policy Rate (MPR).
This adjustment aims to align borrowing costs with the current economic conditions.
Authorized dealers can now submit their SLF requests via the Secured Securities Settlement System (S4) within designated hours.
Additionally, the Intraday Liquidity Facility (ILF) remains available to prevent system gridlock, with a penalty of 5 per cent for unsettled ILF converting to SLF at a higher rate of 36.75 per cent.
Collateral execution has also been reintroduced, following the approved repo guidelines.