CBN defends 75% reserve requirement on public deposits

The Central Bank of Nigeria (CBN) has defended its decision to impose a 75 per cent Cash Reserve Ratio (CRR) on non-Treasury Single Account (TSA) public sector deposits, stating that the measure is aimed at managing liquidity and containing inflationary pressures in the economy. The CBN introduced the policy during its 302nd Monetary Policy Committee meeting in September 2025, with Director of Stakeholder Engagement and Institutional Relations, Hakama Sidi-Ali, explaining the rationale behind the decision during the CBN Listens Programme in Ibadan.

Sidi-Ali emphasized that the policy is part of the Bank's ongoing efforts to improve liquidity management, strengthen monetary policy transmission, and restore macroeconomic stability, alongside other reforms such as unifying exchange rates and introducing the Bloomberg BMatch trading system.

Brief written by urgent.news from Punch Nigeria's own syndicated text. Machine-written — may contain errors; check the original before relying on it.