Banks Slash CBN SDF Deposits by N942 Billion in October

On October 7, 2026, banks cut their deposits with the Central Bank of Nigeria (CBN) through the Standing Deposit Facility (SDF) by N941.85 billion, bringing the total to N3.76 trillion. This reduction is the largest single-day decrease since September 30.

CBN data indicates that SDF placements fell from N4.70 trillion on October 6, following a rise to N4.86 trillion on October 5. The decline follows the Monetary Policy Committee's decision on September 22 to cut the Monetary Policy Rate (MPR) by 350 basis points to 23%, while keeping key reserve requirements unchanged.

The latest reduction has brought banks' SDF deposits below the N4 trillion mark, a level they had maintained for most of the recent period. The data reflects significant fluctuations in banks' overnight placements with the CBN, which had previously exceeded N6 trillion in September before declining towards the month's end.