Deposits by Nigerian banks to the Central Bank of Nigeria (CBN) rose steadily last week from N2.28 trillion on Wednesday to N2.55 trillion on Thursday, closing at N2.62 trillion at the close of business on Friday.
Deposit money banks deposit excess cash at CBN’s Standing Deposit Facility (SDF), which the CBN lends to any banks through its Standing Lending Facility (SLF) window to meet critical overnight obligations with an Overnight interest rate of up to 24.8 per cent as of last Friday, according to FMDQ.
During the week under review, deposit money banks (DMBs) deposited more cash with the CBN than they borrowed.
The opening balances of banks and discount houses (which reflect the amount of liquid cash the lenders reserved for banking transactions) jumped to N637.59 billion on Friday, October 24, 2025, from N522.09 billion the previous day as market liquidity soared through the week.
The improvement is in sharp contrast with mid-week pressures that saw balances fall to N192.65 billion on Wednesday. Lending appetite in the interbank market was reported to have, however, remained subdued, due to elevated benchmark rates.
Earlier on Tuesday, October 21, SDF placements rose to N1.75 trillion from N906.09 billion the previous business day.
While banks eagerly placed excess funds with the CBN, borrowing from the CBN slowed as pressures in the interbank market relaxed.
Standing Lending Facility (SLF) requests settled at N137.10 billion only on Friday after surging to N275 billion on Wednesday, signalling a recovery in liquidity conditions and a more comfortable cash stance heading into the final week of the month.
Earlier in the week, SLF demand remained relatively high at N235 billion on October 21, slightly easing from N260.50 billion the previous day.
