The Nigerian banking sector’s deposits with the Central Bank surged by 154 per cent, reaching N48.40 trillion in the second quarter of 2025.
Data from the CBN’s economic report for Q2 2025 showed that the sharp increase occurred as the Central Bank of Nigeria (CBN) intensified efforts to withdraw excess liquidity from the financial system through aggressive Open Market Operations and higher Cash Reserve Requirements.
Daily average liquidity in the banking sector fell to N0.16 trillion, down from N0.25 trillion in the first quarter, mainly driven by aggressive auctions of Open Market Operations (OMO) bills, Nigerian Treasury Bills (NTBs), Federal Government of Nigeria (FGN) bonds, and debits under the Cash Reserve Requirement (CRR).
The report revealed significant shifts at the CBN’s standing facilities, with the borrowing at the Standing Lending Facility (SLF) dropping by 83.92 per cent to N7.97 trillion.
In comparison, deposits at the Standing Deposit Facility (SDF) soared 153.93 per cent to N48.40 trillion, reflecting a strategic repositioning by banks amid tighter liquidity conditions. Rates at these windows remained unchanged, with SLF charged at 32.50 per cent and SDF at 26.50 per cent.
