The Central Bank of Nigeria (CBN) has directed deposit money banks in Nigeria to pay savings deposit account holders an interest of 30 per cent of the current 14% Monetary Policy Rate (MPR), reverting to what it was in 2020 before the COVID-19 pandemic era.
This was contained in a circular by the apex bank dated August 15, 2022, titled “Review of Interest Rate on Savings Deposits” and signed by , Director of Banking Supervision, Haruna B. Mustafa.
Savings deposit rates are the interest rates that accrue to customers for keeping their money with the banks.
The circular reads: “It will be recalled that as part of the efforts to ameliorate the impact of the COVID-19 pandemic, the Central Bank of Nigeria reduced the minimum interest rates payable on local currency savings deposits from 30% to 10% of the Monetary Policy Rate (MPR). This was aimed at stimulating growth in the larger economy following the economic-slowdown occasioned by the pandemic.
“Accordingly, effective August 1, 2022, the negotiable minimum interest rate on local currency savings deposits shall be 30% of MPR. This supersedes our letter dated BSD/DIR/GEN/LAB/13/052 on the subject. September 1, 2020.”
Recall that the CBN had increased the MPR from 13% to 14% in an effort to combat inflation, which reached a 17-year high of 19.64% in July 2022.
Speaking on the increase in the interest, a trader in Utako Market, Daniel Osagie, said it would not make significant changes.
He said, “Though I get credit alerts on the interest, most times they are little compared to the other charges removed from my account whenever money comes in or goes out from it.”
