Banks’ Deposits with CBN Soar 1,578% to N53.5 Trillion
Oru Leonard
Banks’ deposits with the Central Bank of Nigeria (CBN) have risen sharply by 1,578% year-on-year (YoY) to N53.5 trillion in the first five months of 2025. This significant increase reflects excess liquidity in the banking system and the effect of the CBN’s monetary policies.
Banks’ deposits with the CBN grew from N3.19 trillion in the corresponding period of 2024 to N53.5 trillion in the first five months of 2025.
Standing Deposit Facility (SDF), rose to N16.75 trillion in April 2025, up by 3,793% YoY from N428.98 billion in April 2024
Banks’ borrowing through the Standing Lending Facility (SLF) rose by 6.8% YoY to N57.98 trillion in the first five months of 2025.
The strong patronage of the SDF reflects excess liquidity in the banking system, and the CBN’s shift to a single-tier remuneration structure for the SDF has contributed to this growth. The current Monetary Policy Rate (MPR) of 27.5% has resulted in an SDF rate of 26.5%, making it an attractive option for banks to deposit their excess funds.
The surge in banks’ deposits with the CBN indicates a significant level of liquidity in the banking system. This could have implications for the overall economy, including potential effects on interest rates, inflation, and economic growth.
