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Our view on CBN’s revision of SDF guidelines by CSL Capitals

Barely one week after the CBN issued a letter to all Deposit Money Banks (DMBs) to maintain a minimum Loan to Deposit Ratio (LDR) of 60% by Sept. 2019, it has revised the guidelines around the apex bank’s SDF.



Standing Deposit Facility, 12 states

Barely one week after the Central Bank of Nigeria (CBN) issued a letter to all Deposit Money Banks (DMBs) to maintain a minimum Loan to Deposit Ratio (LDR) of 60% by September 2019, the apex bank, in another desperate attempt to compel lending to the real sector, issued a circular yesterday revising the guidelines around the CBN Standing Deposit Facility (SDF). The new guidelines state that;

  1. The remunerable daily placements by banks at the SDF shall not exceed N2billion.
  2. The SDF deposit of N2billion shall be remunerated at the interest rate prescribed by the Monetary Policy Committee (MPC) from time to time.
  3. Any deposit by a bank in excess of N2billion shall not be remunerated.

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The SDF is a window where DMBs can place excess funds overnight with the CBN. The interest to be earned on such funds is determined with reference to the lower band of the asymmetric corridor around the MPR as prescribed by the MPC.

The current asymmetric corridor is at +200 and -500 basis points around the MPR (13.5%), implying the SDF facility of the CBN should currently attract an interest rate of c.8.5%. Previously, DMBs could place a maximum of N7.5bn daily with the CBN.

[READ THIS: CBN says no more interest payment on bank deposits exceeding N2 billion]

Loan growth in the banking sector has been relatively lethargic post-recession. For context, during 2018, of all the tier one banks, save for UBA (+4%) reported decline in their net loan books (Guaranty; -13%, Zenith; -13%, FBNH; -16%, Access; -1%). The CBN had in November 2014, with the same aim of inducing lending to the private sector, modified the guidelines permitting no more than N7.5bn in daily placements remunerated at 10% per annum.

Data from the CBN, however, does not show that much changed. An analysis of banks’ lending to the private sector based on CBN’s data between February 2015 (shortly after the new guidelines reducing SDF daily limit to N7.5bn) and May 2019 showed that loans to the private sector adjusted for the effects of depreciation showed a decline of 6.8%, assuming an average of 40% of bank lending is in foreign currency.

In our view, measures such as these fail to address the fundamental issues behind banks’ reluctance to lend and would only result in banks looking for innovative ways to get around the rules. The low-risk appetite among banks for lending to the real sector can be attributed in no small measure to the high risks in the operating environment which hinders the survival of SMEs and the profitability of businesses in general. Also, the absence of reliable credit history and effective institutions also hinder banks from lending to the real sector.

[READ FURTHER: Fidelity Bank Plc confirms robbery incident at its Lekki branch]


Consequently, DMBs prefer investing a huge chunk of their liquid assets in government instruments given that they do not have Capital Adequacy Ratio (CAR) implications, are tax-free and do not result in Non-Performing Loans (NPLs).


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Lagos State,


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Corporate Press Releases

N1m up for grabs with Quickteller Business contest

To join in the contest, entrepreneurs are to post a 1-minute video of themselves explaining how N1 million will boost their businesses.




Interswitch has announced a virtual pitch tagged ‘Boost your business with Quickteller’ where one business owner has the opportunity to win N1 million cash. The promo is believed will help businesses signed onto the Quickteller Business platform boost their business further.

To contest for the prize money, business owners are simply required to complete their account activation on Quickteller Business and they stand a chance of winning.

To join in the contest, entrepreneurs are to post a 1-minute video of themselves explaining how N1 million will boost their businesses. The videos should be uploaded on Facebook, Instagram, Tiktok or YouTube with the hashtag #boostwithquickteller. To submit an entry, business owners are required to paste their post’s URL in the video URL section of the entry form on the Quickteller Business site, share the entry with friends and family and invite them to vote.

They must register and activate their businesses on the Quickteller Business platform using the referral code ‘Boost’. Any entry without a referral code will be rendered invalid.

Speaking about the promo, Cherry Eromosele, Group Chief Marketing and Communications Officer at Interswitch noted that the promo is important to Interswitch as it helps business owners – not only to boost their businesses – but to provide solutions that addresses some of the pain points of business owners. “At Interswitch, we are committed to growing the business community by providing simple and scalable payment solutions because it is critical to their growth and essentially to the national economy at large,” she added.

The Quickteller Business platform provides seamless payment solutions for businesses and their customers. The platform is an intuitive and robust one that enables businesses of all sizes, small, medium, large, to take their businesses online even if they did not have prior technology infrastructure or website.

The top 10 entries with the highest votes by 11:59pm on Friday, April 30, 2021 will qualify to participate in the grand finale.

Apart from the numerous benefits enjoyed on the Quickteller Business platform, such as generating invoices to track sales and payments, customized storefront to display products and brand image, backend access to manage inventory, dispute management options to settle chargebacks and refunds, the platform further exposes its users to a ready market of over five million potential customers from Nigeria, Gambia and Kenya.


On the Quickteller Business platform, business owners can get paid by anyone, from anywhere without hassles. From massive corporations to smaller tech-savvy businesses, Quickteller Business makes payment easy for entrepreneurs and their customers.


About Quickteller Business

Quickteller business provides various payment tools for freelancers and small businesses operating without a website to receive payments easily. The platform seamlessly integrates with your existing website or store to provide various payment options.

About Interswitch

Interswitch is a leading technology-driven company focused on the digitisation of payments in Nigeria and other countries in Africa. Interswitch’s vision is to make payments a seamless part of everyday life in Africa, and its mission is to create transaction solutions that enable individuals and communities to prosper across Africa.

Stanbic 728 x 90

We began in 2002 as a transaction switching and electronic payments processing business, building and managing payment infrastructure, delivering innovative payments solutions and driving transactions across Nigeria and other African markets. We provide secure solutions and services that facilitate convenience and real value for consumers, businesses, governments and other organizations, helping to reduce costs, improve operational efficiency and drive sustainable revenue growth.

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FG launches National Gender Steering Committee for Gender Policy in the agricultural sector

The policy document is a developmental strategy for poverty reduction and it is expected to empower small scale holder farmers who are predominately women.



FG moves to reduce gender inequality in agriculture, De-risking the agricultural sector

The Federal Government has announced its inauguration of a National Gender Steering Committee for the Implementation of the Gender Policy in the Agricultural sector, in a bid to offer equal access and gender-sensitive approaches towards food production.

This was disclosed by Permanent Secretary, Federal Ministry of Agriculture and Rural Development, Dr Ernest Umakhihe, who inaugurated the Committee on Wednesday in Abuja.

“The initiative will promote and ensure the adoption of gender-sensitive responsive approaches, plans and programmes in such a way that men and women will have equal access and control of productive resources,” he said.

He added that availability of the policy document was expected to address the vulnerability of women to biases in the Agriculture sector, integrate gender perspectives in National Planning, create more jobs and financial empowerment for women, citing that the National Gender Policy in Agriculture was consistent with the Global 2030 Agenda for Sustainable Development adopted by World Leaders at the United Nations Summit in New York, USA, in September 2015.

Director, Special Duties in the Ministry, Mrs Fausat Lawal also stated that “Women, small scale holder farmers constitute about 70-80% of the agriculture labour force and they produced the bulk of food for domestic consumption.”

She added that the policy document is a developmental strategy for poverty reduction and it is expected to empower small scale holder farmers who are predominately women.

What you should know 

  • Female unemployment rate in Nigeria as of Q4 2020 increased to 35.2% from 31.6% recorded in Q2 2020. This is according to the recent labour force report released by the National Bureau of Statistics (NBS).
  • A total of 61.63 million women were in the working population (15 – 64 years of age) as of Q4 2020 accounting for 50.5% of the total working population. Only 30.15 million of these women were willing and able to work, which represents about 43.3% of the total labour force in the period under review.

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