Nigerian banks have increased their deposits with the Central Bank of Nigeria (CBN) to N6.28tn, underscoring the significant amount of liquidity currently sitting within the banking system. CBN financial market data showed that banks’ placements at the Standing Deposit Facility rose to about N6.278tn on September 29, 2026, from N6.014tn a day earlier.

The latest figure represents a N264bn increase in just one day, while deposits have risen by approximately N379bn from the N5.899tn recorded on September 25. The buildup comes as banks continue to hold substantial excess funds, even as the CBN uses its monetary policy tools to manage liquidity in the financial system.

The development coincided with another major Open Market Operations (OMO) auction by the CBN. The apex bank offered N2.5tn in fresh securities on Tuesday, while N2.433tn worth of existing OMO instruments matured on the same day. The new offer was therefore about N66.8bn higher than the amount that matured, with the auction comprising N500bn in 147-day bills, N1tn in 182-day bills and another N1tn in 266-day bills.

The strong SDF balance also comes against the backdrop of heavy demand for CBN’s OMO securities. Four OMO auctions held earlier in September attracted about N20.58tn in bids against a combined offer of N3.9tn, with the CBN allotting approximately N12.823tn. September subscriptions also surpassed the N18.72tn recorded in August after the central bank expanded access to OMO securities to individuals, companies and non-bank financial institutions through deposit money banks.

Financial analyst and economist Nonso Iheoma said the rising SDF balance indicates that banks still have substantial funds available for placement with the central bank, even as the CBN continues providing investment instruments to absorb liquidity. Despite strong investor appetite, accepted rates on longer-tenor OMO instruments declined from about 18.99 per cent at the beginning of September to 17.29 per cent at the September 24 auction, reflecting changing conditions in the money market.

source: punch