Banks’ deposit with CBN rises 568% to N146.13trn in 9 months

By Elizabeth Adegbesan

Banks’ deposit with the Central Bank of Nigeria, CBN, grew by 568.7 percent, YoY,    to N146.13 trillion successful the archetypal 9 months of the twelvemonth (9m’25) from N21.85 trillion successful the corresponding play of 2024 (9m’24), indicating excess liquidity successful the banking system.  

Trend investigation showed that banks’ deposits successful SDF roseate sharply by 158.4 percent Quarter-on-Quarter    (QoQ) to N49.68 trillion successful the 2nd 4th of 2025 (Q2’25) from N19.22 trillion successful Q1’25. In Q3’25, banks deposited N77.23 trillion, up by 55.4 percent.  

The highest deposit of N50.73 trillion was recorded successful September 2025.

The continuous beardown patronage of the SDF reflects excess liquidity successful the banking strategy and the effect of the CBN’s displacement to a single-tier remuneration operation for the SDF past year.

  Last week, the Monetary Policy Committee (MPC) of the apex slope chopped the MPR by 50 ground points, bps to 27 per cent.  

The CBN has 2 abbreviated word lending windows for banks; the      Standing Lending Facility (SLF) and Repo lending.

It lends wealth to banks done the SLF astatine involvement complaint of 500 bps supra the Monetary Policy Rate (MPR), and it besides lends wealth to banks done Repurchase (Repo) arrangement, which involves the acquisition of banks’ securities with the statement to merchantability backmost astatine a circumstantial day and usually for a higher price.

On the different hand, the CBN accepts deposits from banks done its Standing Deposit Facility (SDF) and pays an involvement complaint of MPR minus 100 bps .  

But banks’ borrowings done the Central Bank of Nigeria, CBN, Standing Lending Facility,    SLF, declined by 12.4 per cent YoY to N69.37 trillion successful the archetypal 9 months of the twelvemonth (9m’25) from N87.09 trillion successful 9m’24.  

Trend investigation showed that    banks’ borrowing done the SLF rose      by 61 per cent, QoQ to N50.46 trillion successful Q2’25    from N9.38 trillion      successful Q1’ 25.

In Q3’25 banks’ borrowings stood astatine N10.670322 trillion representing a 78.8 percent increase.

  The lowest worth banks borrowed was N322 cardinal successful September 2025. The diminution successful banks’ borrowing from the CBN reflects liquidity constraints successful the interbank wealth market.

The apex slope conducted a liquidity mop up done regular merchantability of Open Market Operations, OMO treasury bills (TBs) during the period.

Vanguard’s findings from the apex slope showed that the CBN sold N15.23 trillion worthy of Open Market Operation (OMO) Treasury Bills (TBs) successful 9m’25, up 86.6 percent from N8.16 trillion successful 9m’24.

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