The Central Bank of Nigeria (CBN) has directed banks to increase the minimum interest rate payable on savings deposits from 10 percent to 30 percent of the monetary policy rate (MPR).
By implication, bank customers operating local currency savings in the country would enjoy more interest.
The apex bank said this in a circular dated August 15, 2022, and signed by Haruna B. Mustafa, director of the banking supervision department.
The MPR — the baseline interest rate in an economy, every other interest rate used within an economy is built on it — is currently 14 percent.
Last month, the apex bank raised the MPR from 13 percent to 14 percent to curtail rising inflation. The inflation rate currently stood at a 17-year high of 19.64 percent in July.
With the new circular, bank customers can now make up to 4.2 percent interest on their savings deposit — up from 1.4 percent.
Mustafa explained that the apex bank made the decision owing to the current macroeconomic conditions.
