📺 Nigeria TV Info

Headline: Banks’ Deposits with CBN Soar by 783% to ₦79.8 Trillion in 7 Months

Abuja – Banks’ deposits with the Central Bank of Nigeria (CBN) have skyrocketed by 783.7 percent year-on-year, reaching ₦79.8 trillion in the first seven months of 2025 (7M’25), compared to ₦9.03 trillion during the same period in 2024 (7M’24).

The surge in deposits indicates a significant rise in excess liquidity within the Nigerian banking system, raising concerns about idle funds and underutilization of credit in the real sector.

Analysts say the steep increase may reflect the banks’ preference for safer placements amid economic uncertainties, high interest rates, and limited lending opportunities.

To manage short-term liquidity, the CBN offers two key borrowing options for banks: the Standing Lending Facility (SLF) and the Repurchase Agreement (Repo) window. These tools allow banks to access overnight funds and manage liquidity fluctuations.

Economic experts have urged the CBN to implement measures that will encourage banks to channel more funds into the real economy to support growth, rather than parking large sums with the apex bank.