Nigerian banks significantly increased the amount of funds placed with the Central Bank of Nigeria through its Standing Deposit Facility in July, indicating a sharp rise in excess liquidity within the financial system despite the apex bank’s tight monetary policy stance.
Latest financial data released by the CBN showed that commercial banks deposited N83.95tn with the apex bank in July 2026, representing a 670.2 per cent increase from N10.9 trillion recorded in the corresponding period of 2025.
The sharp rise in SDF placements was accompanied by a steep decline in banks’ reliance on the CBN’s Standing Lending Facility, underscoring improved liquidity conditions across the banking sector.
According to the data, banks borrowed N1.19tn through the SLF in July, an 82 per cent drop from N6.63tn recorded in July last year.
The SDF allows banks with excess cash to place overnight deposits with the CBN and earn interest, while the SLF
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