The Central Bank of Nigeria (CBN) has lifted the suspension on banks borrowing from its Standing Lending Facility (SLF) and set the lending rate at 31.75 percent, following decisions made at the 296th Monetary Policy Committee (MPC) meeting.
Omolara Duke, Director of the Financial Markets Department, announced on August 26, 2024, that the MPC has adjusted the upper corridor of the standing facilities to 5.00 percent from 1.00 percent around the Monetary Policy Rate (MPR).
With the SLF suspension lifted, authorized dealers are to submit their SLF requests via the Seamless Securities Settlement System (S4) between 5 pm and 6:30 pm. They can access the SLF at 31.75 percent and use the Intraday Lending Facility (ILF) without cost if repaid the same day to avoid system congestion.
A 5 percent penalty will apply to participants who do not settle their ILF, which will be converted to SLF at 36.75 percent. The process of collateral execution, involving the rediscounting of pledged instruments at the penal rate, has also been reinstated as per the approved repo guidelines.