Kayode TokedeNigerian banks’ deposits with the Central Bank of Nigeria (CBN) declined by 1.14 per cent month-on-month to N82.99 trillion in August 2026, from N83.96 trillion recorded in July, latest data from the apex bank have revealed.Banks deposit excess liquidity with the CBN through the Standing Deposit Facility (SDF), thereby earning interest on overnight deposits.
According to the CBN’s financial data, the N82.99 trillion recorded in August represented the third-lowest monthly SDF placement by banks so far in 2026.The moderation in banks’ deposits with the apex bank came amid the reduction in the Monetary Policy Rate (MPR) to 26.50 per cent in February 2026 from 27 per cent in 2025, as well as changing liquidity conditions and banks’ search for attractive returns on available funds.
The Monetary Policy Committee (MPC) has so far in 2026 retained the Standing Facilities Corridor around the MPR at +50/-450 basis points.CBN data showed that banks deposited N89.3 trillion through the SDF in June, compared with N87.13 trillion in May and N92.32 trillion in April.
Deposits reached their highest level so far this year in March, at N128.92 trillion. In February, they stood at N61.11 trillion, representing an increase of 16.18 per cent from N52.6 trillion recorded in January.Overall, banks deposited an estimated N678.36 trillion with the CBN in the first eight months of 2026, representing an increase of about 610.58 per cent compared with N95.47 trillion recorded in the corresponding period of 2025.
