A new order was sent by Central Bank of Nigeria (CBN) for deposit money banks to build adequate buffers against miscellaneous losses doubling provisions on performing loans to two per cent.

“In recent times, the adverse macro-economic environment has been a source of concern in the financial sector,” the bank said.

General provisions on performing loans had been fixed at one per cent before the new regulation, said the CBN circular which came into effect last week.

Meanwhile, the interbank lending rate held steady for the second consecutive week at 0.5 per cent after the CBN injected matured Open Market Operation (OMO) bills into the system, traders said.