Banks’ deposits with the CBN surged to N146.13 trillion in nine months, a 568% yearly jump.
Analysts say the rise signals excess liquidity, while bank borrowings from the apex bank declined.
Banks’ deposits with the Central Bank of Nigeria (CBN) rose sharply in the first nine months of 2025, reaching N146.13 trillion. This marks a 568.7 percent increase from N21.85 trillion recorded during the same period in 2024, showing a significant buildup of idle funds in the financial system.
The CBN provides short-term lending and deposit options for banks. Through the Standing Lending Facility (SLF) and Repurchase (Repo) agreements, the apex bank makes funds available at rates above the Monetary Policy Rate (MPR). On the other hand, deposits are accepted through the Standing Deposit Facility (SDF), with interest paid at MPR minus 100 basis points.
Data reviewed indicated that deposits through the SDF jumped by 158.4 percent quarter-on-quarter, moving from N19.22 trillion in the first quarter of 2025 to N49.68 trillion in the second quarter. The upward trend continued in the third quarter, when deposits rose by another 55.4 percent to N77.23 trillion.
Analysts note that the surge reflects excess liquidity in the banking sector and the CBN’s recent adjustment to a single-tier payment system for the SDF.
Meanwhile, banks’ borrowings from the CBN dropped year-on-year. Loans obtained through the SLF fell by 12.4 percent to N69.37 trillion in the nine-month period of 2025, compared to N87.09 trillion in the same period of 2024. This decline suggests that banks relied less on the apex bank for quick funding.
Quarterly trends, however, showed fluctuations. Borrowings through the SLF increased by 61 percent in the second quarter to N50.46 trillion, up from N9.38 trillion in the first quarter. In the third quarter, borrowings climbed further to N10.67 trillion, representing a 78.8 percent rise from the previous quarter.
