Nigerian Banks Deposit N33.05 Trillion Amid Economic Slowdown

Nigerian banks deposited an estimated N33.05 trillion with the Central Bank of Nigeria (CBN) in the first 16 days of 2026, reflecting a slow start to business activities and heightened credit risk concerns. Despite excess liquidity in the financial sector, deposits were significantly below the N63.93 trillion recorded in December 2025, indicating uncertainty in the domestic and foreign economies.

The CBN's Standing Deposit Facility (SDF) and Standing Lending Facility (SLF) windows were utilized by banks to manage their excess cash and urgent liquidity needs. Analysts attribute the growth in bank deposits to high credit risk concerns, leading to a preference for regulatory windows over lending to the real sector.

The Monetary Policy Committee (MPC) maintained the Monetary Policy Rate (MPR) at 27% in line with expectations, signaling a cautious approach to interest rate cuts to support disinflationary trends.