Banks’ Deposits With CBN Rise to N6.28tn Amid Excess Liquidity
Nigerian banks increased the amount of surplus cash placed with the Central Bank of Nigeria (CBN) to about N6.28 trillion, reflecting the high level of liquidity currently available across the banking system.
Data from the CBN showed that funds held by banks under its Standing Deposit Facility (SDF) rose to approximately N6.278 trillion on September 29, 2026, from N6.014 trillion recorded a day earlier.
The latest figure represents a daily increase of about N264 billion and an increase of roughly N379 billion compared with the N5.899 trillion recorded on September 25.
CBN Steps Up Liquidity Management
The increase in banks’ deposits came as the apex bank conducted another Open Market Operations (OMO) auction.
The CBN offered N2.5 trillion worth of fresh securities on Tuesday, while OMO instruments valued at approximately N2.433 trillion matured and became due for repayment on the same day.
The new offer was therefore slightly higher than the amount of securities that matured, leaving a difference of about N66.8 billion.
The latest auction comprised N500 billion in 147-day bills, N1 trillion in 182-day bills and another N1 trillion in 266-day bills. The securities are scheduled to mature between February and June 2027.
Strong Demand for CBN Securities
The substantial funds being placed with the CBN have coincided with strong demand for OMO instruments.
Four OMO auctions held earlier in September generated bids of approximately N20.58 trillion, compared with a combined offer of N3.9 trillion. The CBN ultimately allotted about N12.823 trillion from those auctions.
Market activity has also increased following the expansion of access to OMO securities to individuals, companies and non-bank financial institutions through deposit money banks.
Analysts said the rising SDF balance indicates that banks continue to have significant funds available for placement with the central bank, even as the CBN provides additional investment instruments.
Surplus Liquidity Weighs on Money-Market Rates
The latest development follows several weeks of elevated liquidity in the financial system.
Banking system liquidity rose to N7.45 trillion in the week ended September 24, supported partly by funds released from matured OMO bills. The increase has contributed to lower short-term money-market rates.
The CBN is expected to continue using OMO auctions and other liquidity-management tools to regulate the amount of cash circulating within the banking system.
For banks, the growing SDF balances indicate that a substantial amount of available funds is currently being parked with the apex bank rather than deployed through other avenues within the financial market.
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