The Central Bank of Nigeria (CBN) has directed deposit money banks in Nigeria to pay savings deposit account holders an interest of 30 per cent of the current 14% Monetary Policy Rate (MPR).

This means the apex bank has now reverted to what it was in 2020 before the COVID-19 pandemic era.

This was contained in a circular by the apex bank, titled “Review of Interest Rate on Savings Deposits” and signed by Haruna B. Mustafa, Director of Banking Supervision.

Savings deposit rates are the interest rates that accrue to customers for keeping their money with the banks.

The circular recalled that as part of the efforts to ameliorate the impact of the COVID-19 pandemic, the CBN reduced the minimum interest rates payable on local currency savings deposits from 30% to 10% of the MPR in order to stimulate growth in the larger economy following the economic-slowdown occasioned by the pandemic.

However, experts think the increase in the interest would not make significant changes.