The Central Bank of Nigeria (CBN) has directed deposit money banks in Nigeria not to pay less than a minimum of 10 per cent of the Monetary Policy Rate effective from September 1, 2020. This would amount to 1.25 per cent at the current MPR of 12.5 per cent.
The directive was contained in a circular shared on the Twitter handle seen by ValleytopNg and dated August 31, 2020. titled ‘Re: Interest rate on savings deposit’. And the circular reads as follows;
“The Central Bank of Nigeria has noted with satisfaction declining trends in market rates in the banking sector following the implementation of policies aimed among others, at stimulating credit flow to the real sector.
“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.”