CBN Introduces Updated CRR Mechanism, Halts Daily Debits


In a recent announcement, the Central Bank of Nigeria (CBN) is discontinuing its daily Cash Reserve Ratio (CRR) debits, opting instead for an enhanced CRR mechanism. The objective is to enhance planning, monitoring, and alignment of records with the CBN’s guidelines.

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This development is communicated through a letter titled “Cash Reserve Requirement Framework Implementation Guidelines,” dated February 02, 2024, addressed to all banks.

The revised approach to determining the portion of deposits subject to sterilization through CRR will involve two phases:

Phase 1 – Incremental Approach: The existing ratio of 32.5% will be applied to increases in the weekly average adjusted deposits of banks.

Phase 2 – CRR Levy: A 50% levy on the lending shortfall will be imposed on banks failing to meet the minimum Loan to Deposit Ratio (LDR), as outlined in the CBN’s previous communication (BSD/DIR/GEN/LAB/12/049) dated September 30, 2019.

Banks will receive detailed information on applied charges, along with the computation rationale from the CBN.

Godwin Okafor
Godwin Okafor
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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