Banks Deposit N77.19tn with CBN in 19 Days as Rate Drops to 20%
Kayode Tokede Following the push for overnight interest and safe haven for excess liquidity, Nigerian banks in 19 days of business activities for the months of September 2026 deposited an estimated
In 19 days during September 2026, Nigerian banks deposited an estimated N77.19 trillion with the Central Bank of Nigeria (CBN) using the Standing Deposit Facility (SDF) window. This followed a reduction in the Monetary Policy Rate (MPR) to 20%, which made the SDF an attractive option for banks to earn risk-free returns. The CBN borrowed banks a total of N920 billion during the same period.
The September 22, 2026 MPC meeting may force banks to reduce access to the standing facilities window, as the MPR was reset to 23% and the Standing Facilities corridor recalibrated to +50/-300 basis points around the MPR. SDF deposits in September 2026 stood at N89.3 trillion, up from N92.32 trillion in April 2026 and N87.13trillion in May 2026.
Banks deposited an estimated N678.36 trillion in the first eight months of 2026, marking a 610.58% increase year-on-year compared to N95.47 trillion in the same period of 2025.
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