Regulatory Alerts2009-03-23 | TED-FEM-FPC-GEN-01-041-09Circular on Lending Rates on the CBN Window
This document outlines the lending rates for Central Bank of Nigeria (CBN) Window and the Expanded Discount Window (EDW) based on tenor periods for all Deposit Money Banks and Discount Houses. The repo rates range from MPR + 25 basis points (bps) for 1-3 day tenors to MPR + 475 bps for 180 days in the CBN Window, while they range from MPR + 300 bps for 1-3 days to MPR + 500 bps for a 360-day tenor in the EDW. The maximum spread remains 500 bps on 360-day EDW facility, while it stays at 195 bps above the prevailing CBN MPR for the 90-day tenor repo.
09-61638445 09-61638455 (Fax) March 23, 2009 BOD/DIR/CIR/GEN/01/24 CIRCULAR TO ALL DEPOSIT MONEY BANKS AND DISCOUNT HOUSES: LENDING RATES ON THE CBN WINDOW Further to our circular reference: BOD/DIR/CIR/GEN/01/23 of March 16, 2009, we provide the following clarification on the CBN's lending rates.
| TENORS | GOVT. SECURITIES | |
|---|---|---|
| Repo Rates (%) | ||
| 1-3 days | MPR (9.75) | |
| 4-7 days | MPR+25 | basis points (bps) |
| 30 days | MPR+125 basis points (bps) | |
| 60 days | MPR+175 basis points (bps) | |
| 90 days | MPR+195 basis points (bps) |
Table 1: Applicable Rates for the REPO WINDOW
| TENORS | Expanded Discount Window (EDW) | |
|---|---|---|
| Rates (%) | ||
| 1-3 days | MPR+300 | basis points (bps) |
| 4-7 days | MPR+350 | basis points (bps) |
| 30 days | MPR+400 | basis points (bps) |
| 60 days | MPR+425 | basis points (bps) |
| 90 days | MPR+450 | basis points (bps) |
| 180 days | MPR+475 | basis points (bps) |
| 360 days | MPR+500 | basis points (bps) |
Table 2: Applicable Rates for the Expanded Discount Window Consequently, the maximum spread on the 360-day EDW facility shall be 500 basis points; while the maximum spread on the 90-day tenor repo remains 195 basis points above the prevailing CBN MPR.
Thank You.
James K. A. Olekah Director, Banking Operations Department CENTRAL BANK OF NIGERIA Business Central Area District P.M.B. 0187 Garki, Abuja