Nigerian banks increased their deposits with the Central Bank of Nigeria to more than N6tn after the apex bank repaid N2.41tn in matured Open Market Operations securities.
Data from the CBN’s daily banking system liquidity reports showed that banks’ net placements at the Standing Deposit Facility rose from about N3.86tn on 13 October to N6.08tn on 16 October 2026.
The N2.22tn increase, representing a 57.65 per cent rise, followed the CBN’s repayment of N2.408tn in matured OMO securities on 13 October. No fresh OMO sales were recorded during the four-day period.
The increase suggests that banks channelled much of the additional liquidity into the CBN’s deposit facility rather than deploying the funds into other short-term investments or lending to customers.
The Standing Deposit Facility allows banks to deposit excess funds with the Central Bank of Nigeria and earn interest. It also serves as one of the CBN’s monetary policy tools for managing liquidity in the banking system.
Banks’ deposits at the facility rose sharply on 14 October, reaching N6.065tn from about N3.86tn recorded a day earlier.
The amount dipped slightly to N6.044tn on 15 October before rising to N6.083tn on 16 October, the highest level recorded during the four-day period.
Banks maintained deposits above N6tn for three consecutive days following the initial increase.
The figures show that the CBN’s repayment of matured OMO securities coincided with a substantial rise in banks’ deposits at the apex bank. However, the data do not establish that all the funds released through the repayment were subsequently placed in the SDF.
Sales of government securities absorbed only a small portion of the liquidity released during the period.
The CBN recorded N269.06bn in primary market securities sales on 15 October, matching the amount allotted at the Treasury bill auction conducted on 14 October.
Investors submitted bids worth about N1.032tn at the auction, but the Debt Management Office accepted only N269.06bn, rejecting approximately 74 per cent of the total subscriptions.
The government also recorded N109.96bn in primary market repayments during the four-day period. After accounting for the sales and repayments, net liquidity absorption through primary market securities stood at N159.10bn.
