The Central Bank of Nigeria (CBN) has released a new regulatory directive to enhance lending to the real sector of the Nigerian economy.

The directive, issued and signed by the CBN Acting Director of Banking Supervision, ADETONA ADEDEJI, signifies a notable shift in the bank’s policy towards a more contractionary approach.

In line with the new measures, the CBN has reduced the loan-to-deposit ratio by 15 percentage points, down to 50 per cent.

This move aligns with the CBN’s current monetary tightening policies and reflects the increase in the Cash Reserve ratio rate for banks.

All Deposit Money Banks are now mandated to adhere to this revised the loan-to-deposit ratio.

The apex bank stated that average daily figures will be utilised to gauge compliance with this directive.

ADEDEJI called on all banks to acknowledge these modifications and adjust their operations accordingly. 

He emphasised that this regulatory adjustment is anticipated to significantly influence the banking sector and the wider Nigerian economy.