Financial data released by the Central Bank of Nigeria (CBN), has revealed that deposit money banks and merchant banks in the country borrowed a whooping N18.04 trillion from the CBN in the month of October 2024.
The N18.09 trillion represents 31,565 per cent increase over N57.14 billion borrowed in the same period in October 2023.
As a result of liquidity challenges in the financial sector, an investigation by THISDAY revealed that banks and merchant banks in 10 months of 2024 have borrowed a staggering N104.61 trillion from CBN, up by 532.1 per cent from N16.55 trillion borrowed in 10 months of 2023.
The reported N18.09 trillion banks and merchant banks is the second highest amount accessed from the CBN this year when compared to N21.74 trillion borrowed in March 2024.
The Nigerian financial sector is faced with several liquidity challenges that impact banks businesses, and the broader economy. The liquidity issues often stem from structural economic challenges, policy decisions, regulatory constraints, and global market influences.
