Banks' Deposits with CBN Fall to N91.1 Trillion in May

As of May 2026, banks' deposits with the Central Bank of Nigeria (CBN) stood at N91.1 trillion, reflecting a 0.4% decline from N92.32 trillion in April 2026. The total bank deposits were estimated at N425.86 trillion in the first five months of 2026, an increase of N53.5 trillion compared to the same period in 2025.

The CBN's data indicated that bank deposits rose to N128.92 trillion in March 2026, up from N61.11 trillion in February 2026, marking a 16.18% increase from N52.6 trillion in January 2026. The decline in deposits is linked to a reduction in the monetary policy rate (MPR) from 27% in 2025 to 26.5% in February 2026, which lowered the opportunity cost of holding cash.

Analysts noted that banks prefer to deposit excess liquidity with the CBN's standing deposit facility due to high credit risk concerns in the lending market. Mr.

David Adnori from Highcap Securities explained that banks are cautious in a volatile business environment, opting for safer placements with the CBN.