BREAKING NEWS: Did You Miss The 400 $ex T4pe of Equatorial Guinea senior official Baltasar Ebang Engonga? Quickly W4tch! Before They Are deleted Be The First Person To See The Full Videos. Now!Banks’ borrowings through the Central Bank of Nigeria, CBN, Standing Lending Facility, SLF, declined by 12.4 per cent Year-on-Year, YoY, to N69.37 trillion in the first eight months of the year (8m’25) from N79.23 trillion in 8m’24.
The CBN has two short term lending windows for banks; the Standing Lending Facility (SLF) and Repo lending.
It lends money to banks through the SLF at interest rate of 500 basis points (bpts) above the Monetary Policy Rate (MPR), and it also lends money to banks through Repurchase (Repo) arrangement, which involves the purchase of banks’ securities with the agreement to sell back at a specific date and usually for a higher price.
On the other hand, the CBN accepts deposits from banks through its Standing Deposit Facility (SDF) and pays an interest rate of MPR minus 100 bpts .
Trend analysis showed that banks’ borrowing through the SLF rose by 61 per cent, YoY to N50.46 trillion in Q2’25 from N9.38 trillion in Q1’ 25.
In July, banks’ borrowings stood at N6.63 trillion representing a 245.3 percent increase from N1.92 trillion in June 2025.
The upward trend reversed in August when borrowings fell by 39 percent to N4.04 trillion.
The apex bank conducted a liquidity mop up through regular sale of Open Market Operations, OMO treasury bills (TBs) during the period.
Vanguard’s findings from the apex bank showed that the CBN sold N14.55 trillion worth of Open Market Operation (OMO) Treasury Bills (TBs) in 8m’25, up 95.3 percent from N7.45 trillion in 8m’24.
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Likewise, cost of funds in the interbank money market recorded a significant increase, with the average interest rate on Collateralized (Open Buy Back, OBB) lending at 26.5 per cent at the end of August 2025, up from 19 percent at the end of August 2024.
On the other hand, banks’ deposit with CBN, grew by 454.3 percent YoY to N95.4 trillion in the first eight months of the year (8m’25) from N17.21 trillion in the corresponding period of 2024 (8m’24), indicating excess liquidity in the banking system.
Trend analysis showed that banks’ deposits in SDF rose massively by 158.4 percent quarter-on-quarter (QoQ) to N49.68 trillion in the second quarter of 2025 (Q2’25) from N19.22 trillion in Q1’25.
In July, banks deposited N10.9 trillion, down by 29.2 percent from N15.4 trillion in June 2025.
However in August, deposits grew by 43 percent to N15.6 trillion.
The continuous strong patronage of the SDF reflects excess liquidity in the banking system and the effect of the CBN’s shift to a single-tier remuneration structure for the SDF last year.
The policy stipulated that all SDF deposits are remunerated at the Monetary Policy Rate (MPR) minus 100 basis points and with the current MPR at 27.5 per cent, this resulted in an SDF rate of 26.5 per cent.BREAKING NEWS: Did You Miss The 400 $ex T4pe of Equatorial Guinea senior official Baltasar Ebang Engonga? Quickly W4tch! Before They Are deleted Be The First Person To See The Full Videos. Now!