The Central Bank of Nigeria, CBN, today announced it has raised the interest rate on deposits of commercial banks in its Standing Deposit Facility (SDF) to 26.5 percent effective immediately.

This represents a 0.75 percentage point increase from the 25.75 percent raise in August.

CBN disclosed this in a circular signed by its Director, Financial Operations Department, Dr. Omolara Duke.

According to the apex bank, the increase in interest rate on banks deposits in SDF Abwas based on the decision reached at the 298 meeting of the Monetary Policy Committee (MPC) where the Committee retained the Asymmetric Corridor at +500/-100 around the Monetary Policy Rate, MPR and removed the 2nd tier of the Standing Deposit Facility (SDF) of 19 percent on deposits above N3 billion.

CBN said: “At the 298 meeting of the Monetary Policy Committee (MPC), the Committee retained the Asymmetric Corridor at +500/-100 around the MPR and removed the 2nd tier of the Standing Deposit Facility (SDF) of 19 percent on deposits above N3 billion.

“The SDF will now be remunerated on a single tier basis which is currently the Monetary Policy Rate (MPR) minus 100 basis points.

“Consequently, all SDF will be remunerated at the prevailing SDF rate of 26.5 per cent .

“This circular supersedes the earlier circular on the Asymmetric
“Corridor indicated below: Superseded Circular: Ref:
Subject: FMD/DIR/PUB/CIR/001/017, dated August 26, 2024.
“Operationalisation of the SDF Symmetric Corridor.
“All Authorised Dealers are required to take note of this new development. This circular takes immediate effect.”