Nigeria’s deposit money banks (DMBs) have deposited nearly ₦7 trillion in excess funds at the Central Bank of Nigeria’s Standing Deposit Facility (SDF), reflecting persistent liquidity in the country’s financial system.
Data released by the Central Bank of Nigeria (CBN) showed that banks deposited ₦6.96 trillion on March 11, 2026, before the figure slightly dropped to ₦6.69 trillion on March 12.
The deposits highlight how banks are choosing to earn overnight interest from the CBN rather than immediately expand lending.
Surge in liquidity in banking system
CBN data showed a steady rise in liquidity over recent days:
- ₦5.20 trillion on March 9
- ₦5.27 trillion on March 10
- ₦6.96 trillion on March 11
- ₦6.69 trillion on March 12
The liquidity surge coincided with the repayment of maturing government securities, which injected about ₦1.5 trillion into the banking system.
CBN liquidity management strategy
To manage excess liquidity, the CBN has intensified the use of several monetary tools, including:
- Standing Deposit Facility (SDF)
- Open Market Operations (OMO)
- Treasury bills auctions
In January 2026 alone, the apex bank withdrew over ₦15 trillion from the financial system through a combination of these measures.
The deposit facility currently offers banks an overnight interest rate of about 22.2 percent, making it attractive for parking idle funds.
Analysts say the CBN’s strategy is aimed at containing inflation and stabilising short-term interest rates in Nigeria’s money market.
