Borrowing by Nigerian banks from the Central Bank of Nigeria’s (CBN) Standing Lending Facility (SLF) fell sharply by 89 per cent to N126 billion in August 2026, down from N1.19 trillion recorded in July.
The decline reflects improved liquidity in the banking system, with banks having less need to access short-term funding from the apex bank.
The CBN operates two short-term lending windows for banks: the Standing Lending Facility (SLF) and repurchase (Repo) lending.
Through the SLF, the apex bank provides funds to banks at an interest rate 500 basis points above the Monetary Policy Rate (MPR). Under the Repo arrangement, the CBN provides funds against banks’ securities with an agreement for the securities to be repurchased at a specified date and usually at a higher price.
The apex bank also accepts deposits from banks through its Standing Deposit Facility (SDF).
According to the CBN’s latest Financial Data for August 2026, banks’ deposits in the SDF declined by 1.14 per cent to N82.99 trillion in August from N83.95 trillion in July.
The development comes after the CBN retained the Monetary Policy Rate at 26.5 per cent alongside other key monetary policy parameters.
The reduction in banks’ reliance on the SLF suggests improved liquidity conditions in the banking system, while the unchanged MPR means the benchmark policy rate remains at 26.5 per cent.
Source: Central Bank of Nigeria (CBN)
