BANKS DEPOSIT ₦83.95 TRILLION WITH CBN AS SYSTEM LIQUIDITY INCREASES

Nigerian banks placed ₦83.95 trillion with the Central Bank of Nigeria (CBN) as excess liquidity in the financial system continued to rise.

The increased deposits, made through the CBN's Standing Deposit Facility (SDF), reflect higher liquidity levels within the banking sector and the apex bank's ongoing monetary policy measures to manage money supply.

Financial analysts said the trend indicates that banks are holding significant surplus funds, preferring to park excess liquidity with the CBN rather than increase lending in the short term.

They noted that the development could help the CBN manage inflationary pressures and stabilise financial markets, although it may also point to cautious lending amid prevailing economic conditions.

Experts added that sustaining liquidity management alongside policies that encourage productive lending will be important to supporting private sector growth and overall economic expansion.

The CBN continues to deploy monetary policy tools aimed at maintaining price stability, strengthening the financial system, and supporting sustainable economic growth.