Nigeria’s banking system liquidity rose sharply to N8.06 trillion as commercial banks parked more funds at the Central Bank of Nigeria’s Standing Deposit Facility, signaling a buildup of excess cash in the financial system.

Data from the Central Bank of Nigeria showed the figure at the end of a three-day trading period that closed on Wednesday, March 18.

This follows a shortened trading week due to public holidays on Thursday and Friday, with liquidity conditions tightening as the regulator reinforced monetary control amid a growing cash surplus in the system.

Banks sharply boosted their deposits at the CBN’s Standing Deposit Facility over the three-day period, underscoring a rise in overall system liquidity.

The figures also indicate a strong day-on-day and week-on-week increase in excess reserves held by financial institutions.

Banks placed N8.06 trillion at the Standing Deposit Facility, up by N1.39 trillion from N6.67 trillion recorded a day earlier.

Opening balances of banks and discount houses also increased from N103.66 billion on March 16 to N120.60 billion by March 18.

Meanwhile, liquidity injections, covering Open Market Operations and primary market repayments, totaled N926.30 billion over the three-day period.

A breakdown of inflows indicates that repayments from maturing instruments were a key driver of rising liquidity across the banking system.

These repayments released previously locked funds back into banks’ balance sheets, further amplifying the cash surplus.

A total of N926 billion was injected into the system between March 16 and 18 through Open Market Operations and primary market maturities.

The largest inflow was recorded on March 17, comprising N785.75 billion from OMO maturities and N83.60 billion from primary market repayments.
Additional inflows included N56.95 billion on March 18 and N711.47 million on March 16.

Recent data suggest the current liquidity surge is significantly higher than levels seen in previous months, underscoring the continued abundance of excess cash in the system despite regulatory tightening measures.

In February 2026, SDF placements peaked at around N4.26 trillion amid mid-month liquidity pressures.

During that period, about N3.57 trillion was sterilised within three days, while banks still held daily SDF balances close to N3 trillion.