The Central Bank of Nigeria has raised the minimum interest rate on savings deposits in banks. Specifically, the CBN has raised the minimum rate on local currency savings deposits to 30 percent of its benchmark rate, which was hiked to 14 percent in July. According to the CBN, the raising of the minimum interest rate reflects the economy’s improvement since the onset of the coronavirus pandemic. Recall the CBN in September 2020 reduced the minimum savings deposit rate to 10 percent from 30 percent to curb the cost of borrowing and stimulate economic growth.
