By Chico Mies The confrontation between Leonidas and Xerxes in 300 and the ongoing political crisis in Rivers State share striking thematic similarities, particularly in the struggle between power and resistance. Leonidas’ quote: “The world will know that a free man stood against a tyrant. That few stood against many. And before this battle was over, even a god-king can bleed.” resonates deeply with the current standoff in Rivers State, where Governor Siminalayi Fubara finds himself at odds with the federal authority following President Bola Tinubu’s declaration of a state of emergency. The Tyrant vs. The Free Man In 300, Xerxes presents himself as an all-powerful ruler, demanding submission from Leonidas and the Spartans. Similarly, Tinubu’s imposition of emergency rule can be interpreted as an assertion of supreme federal power over Rivers State, challenging its autonomy. Fubara, like Leonidas, stands as a figure of defiance, resisting what he and his supporters perceive ...
By Chico Mies.
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| Central Bank Of Nigeria |
With the introduction of a new interest rate structure, the Central Bank of Nigeria (CBN) has allowed financial institutions to earn between 19% and 25.75 per cent on deposits kept with the central bank. The CBN had previously suspended its Standing Lending Facility (SLF) for banks.
The Monetary Policy Committee (MPC) decided in July to modify the asymmetric corridor, which resulted in notable adjustments to the lending and deposit facilities provided by the CBN. This decision was followed by the directive, which is effective immediately.
The Monetary Policy Committee (MPC) increased the MPR by 50 basis points to 26.75 per cent during its meeting in July. Additionally, the MPC changed the asymmetric corridor surrounding the MPR from +100/-300 basis points to +500/-100 basis points.
The recent modifications to the CBN's lending and deposit facilities were made possible by this adjustment.
The CBN detailed the new interest rate structure for deposits in a recent circular that was signed by Dr Omolara Duke, Director of the Financial Markets Department. On deposits up to N3 billion, commercial and merchant banks can now earn up to 25.75 per cent. Over N3 billion in deposits will be subject to a reduced rate of 19 per cent.
In a similar vein, deposits up to N1.5 billion would earn Payment Service Banks (PSBs) 25.75 per cent interest; deposits over this amount would get 19 per cent.
The circular also declared that the SLF suspension will be lifted, enabling banks to borrow money at a 31.75 per cent rate from the CBN. The SLF is available to banks via the Scripless Securities Settlement System (S4) between the hours of 5:00 and 6:30 p.m. Furthermore, authorised dealers may utilise the Intraday Lending Facility (ILF) at no cost as long as the loan is paid back on the same day.
In its 296th meeting, the Monetary Policy Committee (MPC) changed the standing facilities' top corridor from 1.00 per cent to 5.00 per cent surrounding the MPR.
As a result, the Standing Lending Facility (SLF) suspension is therefore lifted, and Authorised Dealers are hereby instructed to submit their requests for SLF via the Scripless Securities Settlement System (S4) between the hours of 5:00 and 6.30 p.m.
“To this purpose, Authorised Dealers are allowed to use the SLF at a rate of 31.75%; allowed to use the Intraday Lending Facility (ILF) at no cost if the loan is paid back the same day to minimise systemic bottlenecks;
Participants who do not settle their ILF will still be assessed a 5.00 per cent penalty (as specified in the S4 business regulations), which the system will convert to SLF at a rate of 36.75 per cent;
The circular has immediate effect and reinstates collateral execution, which is the rediscounting of instruments promised by participants at the punitive rate by CBN, by the approved repo norms.
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