Nigerian overnight interbank lending rates rose to 20 percent on Thursday after the central bank recalled some 400 billion naira ($2.02 billion) from the banking system to meet a new cash reserves ratio (CRR) on deposits, traders said.

Traders said the open buy-back (OBB) and overnight rate were quoted by banks at 20 percent compared with 6.75 percent and 7.33 percent at the close on Wednesday due to banks scrambling for funds.

On Tuesday, Nigeria's central bank raised its benchmark interest rate from 11 to 12 percent, and the cash reserve ratio for commercial banks to 22.5 percent from 20 percent, to try to curb rising inflation.