The Central Bank of Nigeria (CBN) has officially announced the lifting of the suspension on the Standing Lending Facility (SLF), a critical tool used by banks to manage their short-term liquidity needs.
This move follows the recent decisions made by the Monetary Policy Committee (MPC) at its 296th meeting, where several adjustments to the monetary policy rates were approved.
In a statement signed by the Director of the Financial Markets Department, Omolara Duke, the apex bank outlined the new operational guidelines that authorized dealers must follow.
These guidelines include key provisions that will have immediate implications for the financial markets. Authorised Dealers are now permitted to access the SLF at an interest rate of 31.75 percent.
This marks a significant increase from previous levels and reflects the CBN’s ongoing efforts to manage liquidity in the banking system effectively.
To prevent “systemic gridlock”, dealers are now allowed to access the Intraday Liquidity Facility (ILF) at no cost, provided the borrowed funds are repaid within the same day. This provision aims to ensure the smooth operation of the financial markets without adding unnecessary costs to the banking institutions.
