The Central Bank of Nigeria (CBN) has introduced a single-tier remuneration structure for its Standing Deposit Facility (SDF), which applies to commercial banks’ large deposits exceeding N3 billion.
A Standing Deposit Facility (SDF) is a financial instrument central banks employ to regulate liquidity within the economic system.
Banks with excess liquidity can deposit these funds with the central bank using the SDF. The central bank, in turn, provides interest on these deposits.
In a circular addressed to United Bank for Africa, Zenith, Access, Guaranty Trust Bank and other commercial banks, CBN said the Sanding Deposit Facility (SDF) will now be 26.5%.
This represents a sharp increase from the previous 19%.
The policy change was communicated through a circular issued by Omolara O. Duke, Director of the Financial Markets Department.
The circular instructed all authorised financial institutions to acknowledge and implement the updated structure, which supersedes the previous framework, Punch reports.
It reads:
TimesNow.com.ng earlier reported ten commercial banks operating in the country contributed over N155 billion in income tax payments to the coffers of the federal government of Nigeria.
The amount marks a significant increase of 33.50% from the N116.54 billion paid by the banks during the previous fiscal year, as reported by their financial statements submitted to the Nigerian exchange.
The ten banks that made the list include Zenith Bank, GTCO, UBA, Stanbic IBTC Holdings, FCMB, Fidelity Bank, Sterling Bank, Wema Bank, Unity Bank, and Jaiz Bank.
Source: TimesNow.com.ng
