The Central Bank of Nigeria (CBN) has lifted the suspension on banks borrowing from its Standing Lending Facility (SLF), a move aimed at stabilizing liquidity in the financial system.
This decision follows the outcomes of the 296th Monetary Policy Committee (MPC) meeting.
In a statement issued by Omolara Duke, Director of the Financial Markets Department, on August 26, 2024, the CBN adjusted the upper corridor of the standing facilities, raising it from 1.00% to 5.00% above the Monetary Policy Rate (MPR), effectively setting the lending rate at 31.75%.
Authorised dealers can now submit SLF requests via the Scripless Securities Settlement System (S4) during the operating hours of 5 PM to 6:30 PM. The CBN also allows access to Intraday Liquidity Facility (ILF) at no cost if repaid the same day, to prevent system gridlock.
However, dealers failing to settle ILF will face a 5% penalty, with their debt being converted to SLF at 36.75% under collateral execution, as per the repo guidelines.
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