Banks’ deposits with CBN rises 568% to N146.13 trillion in 9mth

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), reflecting the enormity of idle currency (excess liquidity)   in the banking system.

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 ground points (bpts) 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   bpts.

Vanguard   analysis of information by the   CBN showed that banks’ deposits via the Standing Deposit Facility,    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. This inclination continued in   Q3’25   with banks’   deposits with   the apex banking rising by 55.4 percent QoQ to   N77.23 trillion.

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.  

However, banks’ borrowings from the   CBN, via the Standing Lending Facility,   SLF, fell   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.  

The decline   in banks’ borrowing   from the CBN   indicates banks depended less   on the apex slope for abbreviated term   liquidity needs.  

Vanguard  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 N10.67   trillion representing a 78.8 percent QoQ increase.

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