BY NKECHI NAECHE-ESEZOBOR: With inflation rate at 12.8%,, the Central Bank of Nigeria (CBN) has directed deposit money banks in Nigeria to pay 1.25% interest on savings deposit accounts effective September 1, 2020.
This was contained in a circular dated August 31, 2020 and signed by Bello Hassan, Director of Banking supervision with reference Num BSD/DIR/GEN/LAB/13/052 titled “Re: Interest Rate on Savings Deposit” which this reads:
“In line with recent market developments, the ‘Bank has reviewed the minimum interest payable on savings deposits as provided in its Guide to Charges by Banks’ consequently reviewing rates to 10% of Monetary Policy Rates.
“Consequently, all deposit money banks are hereby informed that effective September 1, 2020 interest on local currency savings deposits shall be negotiable subject to a minimum of 10% per annum of Monetary Policy Rate.”
According to the apex bank, it’s policy is aimed at encouraging credit to the real sector.