The Central Bank of Nigeria has defended its decision to impose a 75 per cent Cash Reserve Ratio on non-Treasury Single Account public sector deposits, saying the policy is aimed at managing liquidity and curbing inflationary pressures.
The Director of the CBN’s Stakeholder Engagement and Institutional Relations Department, Hakama Sidi-Ali, explained the policy during the CBN Listens Programme held in Ibadan, Oyo State, on Thursday.
The apex bank introduced the 75 per cent CRR on non-Treasury Single Account public sector deposits at its 302nd Monetary Policy Committee meeting, held on September 22 and 23, 2025.
In a statement issued on Friday, the apex bank said Sidi-Ali described the 75 per cent CRR on non-Treasury Single Account public sector deposits as a measure to strengthen liquidity management and curb inflationary pressures.
The Cash Reserve Ratio is the percentage of customer deposits that banks are required to hold with the central bank instead of using the funds for lending or other business activities.
The policy is designed to curb excess liquidity in the banking system and strengthen the effectiveness of monetary policy, although it reduces the funds banks can access for lending and other activities from the affected deposits.
Sidi-Ali said the CBN, under Governor Olayemi Cardoso, had continued to implement monetary and financial sector reforms aimed at restoring macroeconomic stability, strengthening financial markets and boosting confidence in the economy.
She also highlighted the unification of exchange rates and the introduction of the Bloomberg BMatch trading system as measures aimed at improving transparency and efficiency in the foreign exchange market.
Sidi-Ali also described the banking sector recapitalisation programme as a significant milestone, noting that it had strengthened banks’ capital adequacy, resilience and capacity to support economic growth.
Other initiatives she highlighted included the Non-Resident Bank Verification Number, designed to improve banking access for Nigerians living abroad, and the Nigeria Payments System Vision 2028.
She also cited the Nigerian Overnight Financing Rate, developed in collaboration with the Financial Markets Dealers Association, as a market-based benchmark for short-term funding transactions.
According to Sidi-Ali, the benchmark is designed to enhance transparency in the money market and bring Nigeria’s financial infrastructure in line with international best practices.
On financial inclusion, she said the CBN would continue collaborating with financial institutions, fintech companies, mobile money operators, development partners and state governments to extend financial services to underserved communities.
She stressed that expanding access to financial services was essential to promoting entrepreneurship, reducing poverty and creating economic opportunities.
