Banks' deposits in the Central Bank of Nigeria's (CBN) Standing Deposit Facility (SDF) rose by 670.2 percent year-on-year to N83.95 trillion in July 2026, up from N10.9 trillion in July 2025.
At the same time, banks' borrowing from the apex bank through the Standing Lending Facility (SLF) fell by 82 percent year-on-year to N1.19 trillion in July 2026 from N6.63 trillion in the corresponding period of 2025.
The figures are contained in the CBN's latest financial data.
The CBN accepts deposits from banks through the SDF and provides short-term funding through the Standing Lending Facility and Repo lending window.
Under the SLF, the apex bank lends to banks at an interest rate of 500 basis points above the Monetary Policy Rate (MPR). It also provides funding through Repurchase (Repo) arrangements, which involve purchasing banks' securities with an agreement to sell them back at a specified date, usually at a higher price.
According to the data, the sharp increase in banks' deposits and the decline in borrowing indicate higher liquidity in the banking system.
The development comes after the CBN retained the Monetary Policy Rate at 26.5 percent. The apex bank also maintained the asymmetric corridor around the MPR at +50 basis points and -450 basis points, the Cash Reserve Ratio (CRR) for commercial banks at 45 percent, the CRR for merchant banks at 16 percent, and the 75 percent CRR on Non-TSA public sector deposits.
The decision to retain these policy parameters signals that the CBN is maintaining its inflation-targeting approach through tight monetary measures.
