Nigerian banks deposited a record ₦83.95 trillion with the Central Bank of Nigeria (CBN) through the Standing Deposit Facility (SDF) in July 2026, highlighting a sharp rise in excess liquidity across the banking sector despite the Monetary Policy Rate (MPR) remaining at 26.5 percent.

Data released by the CBN and analysed by StatiSense showed that deposits under the SDF increased by 670.2 percent year-on-year from ₦10.90 trillion recorded in July 2025 to ₦83.95 trillion in July 2026.

In contrast, banks significantly reduced their reliance on the CBN’s Standing Lending Facility (SLF), borrowing just ₦1.19 trillion in July 2026 compared to ₦6.63 trillion in the corresponding period of 2025, representing an 82 percent decline.

The figures indicate that commercial banks deposited more than 70 times the amount they borrowed from the apex bank during the month, reflecting strong liquidity conditions within the financial system.

The Standing Deposit Facility allows banks with surplus cash to place funds with the CBN and earn interest, while the Standing Lending Facility enables banks facing short-term liquidity shortages to borrow from the central bank.

Financial analysts say the sharp increase in SDF deposits, coupled with the steep decline in SLF borrowing, suggests that banks had ample liquidity available even as interest rates remained elevated following the CBN’s decision to retain the Monetary Policy Rate at 26.5 percent.

The latest figures underscore evolving liquidity dynamics in Nigeria’s banking sector and may influence future monetary policy decisions as the CBN continues its efforts to manage inflation and maintain financial system stability.

Source: Central Bank of Nigeria (CBN), StatiSense.