Nigeria’s deposit money banks held nearly N7 trillion in excess liquidity at the Central Bank of Nigeria’s Standing Deposit Facility as of March 12, 2026, highlighting a persistent cash surplus in the banking system.

CBN data showed that deposits at the facility stood at about N6.96 trillion on March 11 before easing slightly to N6.69 trillion on March 12.

The trend reflects continued strong liquidity inflows, with banks choosing to earn overnight interest from the CBN rather than immediately expand lending.

Data from the CBN showed a steady accumulation of liquidity in the banking system in recent days, as lenders continued to park surplus funds at the apex bank’s deposit facility.

The SDF recorded deposits of N6.96 trillion on Wednesday, March 11, and N6.69 trillion on Thursday, March 12, 2026, representing a sharp increase from earlier levels.

This marked a significant rise from N5.27 trillion on Tuesday, March 10, and N5.20 trillion on March 9, highlighting a rapid build-up of liquidity within a short period.

Primary market repayments surged to around N711.55 billion on March 12, sharply up from N481.61 billion on March 11 and N266.46 billion on March 10.

These repayments typically represent maturing Treasury bills or Federal Government bonds, returning principal to investors—mainly deposit money banks and institutional investors—and boosting liquidity in the financial system.
While government securities repayments added liquidity, fresh government borrowing absorbed part of the surplus funds.

The CBN recorded primary market sales of about N933.92 billion on both March 11 and March 12, reflecting settlements from a recent Treasury bill or Federal Government bond auction.

The large issuance acted as a liquidity mop-up, helping to absorb part of the cash released from maturing securities.

Government borrowing in the primary market often complements other CBN liquidity management tools to maintain stability in the money market.

Despite these absorption measures, the high level of deposits at SDF indicates that liquidity in the banking system remains elevated.

The Central Bank of Nigeria has stepped up efforts to manage excess liquidity in the banking system using a combination of monetary tools, including the Standing Deposit Facility, Open Market Operations, and Treasury bill auctions to withdraw surplus funds from circulation.

In January 2026 alone, the CBN removed over N15 trillion from the banking system through these measures.

This included N8.5 trillion from OMO sales, N3.7 trillion from primary market issuances, and N2.9 trillion deposited at the SDF.