Nigeria's Central Bank has issued an ultimatum to banks in the country to make available at least 60% of their deposits for loans by September 2019, or risk being sanctioned.
Failure to adhere to the directive means banks will have their cash-reserve requirements increased, and compelled to deposit more money at the Central Bank.
The directive is part of efforts to boost economic growth in Africa’s most-populous country.
Banks in Nigeria are some of the most reluctant lenders in major emerging markets, with an average loan-to-deposit ratio below 60 percent