The Central Bank of Nigeria has reduced the amount banks can place daily in Standing Deposit Facility (SDF), in a bid to encourage commercial lenders to extend more credits to the private sector.

In a circular issued on Wednesday and signed Angela Sere-Ejembi, Director, Financial Markets Department of the CBN, the apex bank pegged the amount a bank can place as SDF to N2 billion per day. 

“Any deposit by a bank in excess of N2 billion shall not be remunerated,” the CBN explained.

The apex bank noted that SDF that does not exceed N2 billion will attract the benchmark interest rate, which currently stands at 13.5 per cent.

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