Mr. Bello Hassan the financial regulator; director of banking supervision signed a circular directing all commercial banks in Nigeria not to pay less than 1.25% interest on saving deposit accounts.
Although the trend in market rates continues to drop, the banking sector seemed to be less disturbed.
The policy implementation is targeted at increasing the credit flow to the real sector.
With the standard bench mark rate for lending in the financial services of MPR at 12.5%, a review was made for the minimum interest payable on saving deposit relative to changes by banks to be 10% of MPR
Going with the circular signed, the implementation took effect on 1st of September, 2020.