RateCaptain
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
Subscribe
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
RateCaptain
No Result
View All Result
Home Banking

Banks’ Deposits with CBN Skyrocket 907% to N68.9 Trillion in H1 2025

Victoria Attah by Victoria Attah
July 3, 2025
in Banking
Reading Time: 2 mins read
A A
0
Liquidity Crunch in Nigerian Banking Sector Spurs Surge in Borrowings.
Share on FacebookShare on TwitterShare on WhatsappShare on Telegram

Nigerian commercial banks have significantly boosted their deposits with the Central Bank of Nigeria (CBN), reaching N68.9 trillion in the first half of 2025 (H1’25), a remarkable 907.3% year-on-year (YoY) increase from N6.84 trillion in H1’24. This surge highlights substantial liquidity within the banking system, driven by the CBN’s monetary policies aimed at managing inflation and stabilizing the economy.

The CBN’s Standing Deposit Facility (SDF) recorded N19.22 trillion in deposits in Q1’25, a 956% YoY rise from N1.82 trillion in Q1’24, and N49.68 trillion in Q2’25, up 889.6% from N5.02 trillion in Q2’24. This growth is attributed to the CBN’s 2024 adoption of a single-tier SDF remuneration structure, which offers an attractive 26.5% interest rate (the Monetary Policy Rate of 27.5% minus 100 basis points). This policy has encouraged banks to deposit excess liquidity with the CBN, reflecting confidence in the apex bank’s liquidity management framework.

AlsoRead

Nigerian Fintechs Shine in CNBC’s 2025 Top 300 Global Fintech List

Eight Nigerian Banks Set Aside N156 Billion for Loan Losses in Q1 2025

Ecobank Nigeria Signals Robust Financial Health with Early Eurobond Repayment

In contrast, bank borrowings through the CBN’s Standing Lending Facility (SLF) grew modestly by 3.04% YoY to N59.84 trillion in H1’25 from N58.07 trillion in H1’24. Q1’25 borrowings surged 61% to N50.46 trillion from N31.25 trillion in Q1’24, but Q2’25 saw a sharp 65% decline to N9.38 trillion from N26.82 trillion in Q2’24. The CBN also employed Open Market Operations (OMO) to mop up liquidity, selling N8.05 trillion in Treasury Bills in H1’25, a 27.3% increase from N6.32 trillion in H1’24.

Interbank lending costs have eased, with the average interest rate for collateralized Open Buy Back (OBB) lending dropping to 27% by June 2025, down from 29% in June 2024. The CBN’s high Cash Reserve Ratios—50% for commercial banks and 16% for merchant banks—continue to shape liquidity dynamics, balancing inflation control with financial stability. Analysts note that the significant deposit growth reflects banks’ cautious approach amid economic uncertainties, while the CBN’s policies aim to curb speculative pressures on the naira and maintain macroeconomic stability. This trend underscores Nigeria’s evolving financial landscape, with the CBN playing a pivotal role in managing liquidity and fostering economic resilience.

 

Tags: bank
Previous Post

IMF Endorses CBN’s Tight Monetary Policy to Tackle Nigeria’s Inflation

Next Post

Nigeria’s Fiscal Deficit to Reach 4.7% of GDP in 2025, IMF Warns

Related News

Nigerian Fintechs Shine in CNBC’s 2025 Top 300 Global Fintech List

by Jide Omodele
July 17, 2025
0

Five Nigerian fintech companies—PalmPay, Moniepoint, OPay, PiggyVest, and Interswitch—have secured spots on CNBC and Statista’s 2025 list of the World’s...

Liquidity Crunch: Banking Sector’s Borrowing from CBN Surges to N12 Trillion.

Eight Nigerian Banks Set Aside N156 Billion for Loan Losses in Q1 2025

by Rate Captain
July 15, 2025
0

Eight Nigerian banks collectively recorded N156 billion in impairment charges for credit and financial assets in the first quarter of...

Ecobank Group Reports Impressive 59% Growth in Gross Earnings to N1.21tn

Ecobank Nigeria Signals Robust Financial Health with Early Eurobond Repayment

by Jide Omodele
July 14, 2025
0

Ecobank Nigeria Limited has bolstered market confidence by repaying 50% of its $300 million 7.125% Senior Notes due February 2026,...

CBN – FG incurred N930.8bn Fiscal Deficit in January and February 2023.

CBN Mandates Banks to Submit Capital Restoration Plans to Exit Forbearance Regime

by Jide Omodele
July 8, 2025
0

The Central Bank of Nigeria (CBN) has issued a directive requiring commercial banks to submit comprehensive capital restoration plans as...

Next Post

Nigeria’s Fiscal Deficit to Reach 4.7% of GDP in 2025, IMF Warns

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Nigerian Fintechs Shine in CNBC’s 2025 Top 300 Global Fintech List

July 17, 2025
Battered Commodity Currencies Gain Attention Amid Dollar’s Decline.

Naira Weakens to N1,560/$1 Ahead of CBN’s 301st MPC Meeting

July 17, 2025

Popular Story

  • Fair Money Job Opening: Regional Sales Manager

    Fair Money Job Opening: Regional Sales Manager

    0 shares
    Share 0 Tweet 0
  • FG Takes Governors to Supreme Court Over Local Government Allocations

    0 shares
    Share 0 Tweet 0
  • Exploring the data on multidimensional and monetary poverty in Nigeria.

    0 shares
    Share 0 Tweet 0
  • Nigeria’s E-Payment Transactions Reach Record High of N1.07 Quadrillion in 2024

    0 shares
    Share 0 Tweet 0
  • Naira Gains Strength, Reaches N1,635/$1 in Parallel Market Amidst FX Stability

    0 shares
    Share 0 Tweet 0
RateCaptain

RateCaptain

We bring you the most accurate in new and market data. Check our landing page for details.

  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Disclaimer
  • Cookie Policy
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

No Result
View All Result
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

RateCaptain
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}
?>