The Central Bank of Nigeria (CBN) has reinstated banks’ ability to borrow from its Standing Lending Facility (SLF) after previously suspending this option.
Naija News reports that the apex bank has also set the lending rate at 31.75 per cent.
These decisions were announced following the resolutions made during the 296th Monetary Policy Committee (MPC) meeting.
The Director of the Financial Markets Department, Omolara Duke, in a statement issued on August 26, 2024, indicated that the Monetary Policy Committee (MPC) had modified the upper limit of the standing facilities to 5.00 per cent from the previous 1.00 per cent with the Monetary Policy Rate (MPR) during its 296th meeting. 
“Consequently, the suspension of the Standing Lending Facility (SLF) is hereby lifted, and Authorised Dealers should send their request for SLF through the Sceipless Securities Settlement System (S4) within the operating hours of 5 pm to 6.30 pm,” the statement noted.
Duke announced that authorized dealers can now utilize the SLF at a rate of 31.75% and can access the ILF without incurring any charges, provided they are repaid on the same day, to prevent system gridlock.
She further noted that a 5% penalty remains in effect for participants who fail to settle their ILF, which will be converted to SLF at a rate of 36.75%.
Additionally, collateral execution, which involves the rediscounting of instruments pledged by participants at the penal rate by the CBN, has been reinstated as outlined in the approved repo guidelines.
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