Nigerian Banks Deposit N336.24 Trillion with CBN in 2025 Due to Credit Risk Concerns

In 2025, Nigerian banks deposited N336.24 trillion with the Central Bank of Nigeria (CBN) amid credit risk concerns and economic uncertainties. The total deposits saw a 7.7% year-on-year increase from 2024.

Banks and merchant banks utilized the Stand Deposit Facility (SDF) window to deposit excess cash with the CBN. Despite a decline in borrowing, the banking sector showed mixed behavior in terms of depositing and lending to the CBN.

Analysts attribute this trend to high credit risk concerns and a preference for safety over lending to the real sector. This move has led to a slow pressure on the interbank market and an increase in signals of recovery in liquidity conditions heading into 2026.