Nigerian banks significantly increased the amount of money deposited with the Central Bank of Nigeria (CBN) through its Standing Deposit Facility (SDF), with total deposits rising by 670.2 percent to ₦83.95 trillion in July 2026, up from ₦10.9 trillion recorded in July 2025.
The latest financial data released by the CBN also showed that banks relied less on borrowing from the apex bank during the same period.
According to the report, banks’ borrowing through the Standing Lending Facility (SLF) dropped by 82 percent, falling to ₦1.19 trillion in July 2026 from ₦6.63 trillion a year earlier.
The Standing Deposit Facility (SDF) allows banks to deposit excess funds with the CBN, while the Standing Lending Facility (SLF) and Repurchase (Repo) window enable banks to access short-term loans when needed.
Analysts say the sharp rise in deposits and the decline in borrowing indicate stronger liquidity within Nigeria’s banking system, suggesting that banks now have more cash available and are less dependent on emergency funding from the apex bank.
The development comes shortly after the CBN retained the Monetary Policy Rate (MPR) at 26.5 percent, while maintaining other key monetary policy parameters, including the Cash Reserve Ratio (CRR) for commercial banks at 45 percent.
The decision reflects the apex bank’s continued commitment to its tight monetary policy aimed at reducing inflation and maintaining stability in the financial system.
