CBN Bank Deposits Drop to N92.32 Trillion After MPR Cut

As of April 2026, banks' deposits with the Central Bank of Nigeria (CBN) have fallen to N92.32 trillion, representing a 28.4% decrease from N128.9 trillion in March 2026. This decline follows a reduction in the Monetary Policy Rate (MPR) from 27% in 2025 to 26.5% in February 2026.

The CBN's financial data indicates that deposits in February 2026 were N61.11 trillion, marking a 16.18% increase compared to N52.6 trillion in January 2026. Analysts suggest that the recent MPR cut has lowered the opportunity cost of holding cash, prompting banks to prefer the CBN's Standing Deposit Facility (SDF) for risk-free returns.

The CBN has retained the corridor around the MPR at 450 basis points, which influences interest rates and encourages banks to deposit excess liquidity rather than lend in a high-risk environment. The first four months of 2026 saw an estimated N334.95 trillion in bank deposits, with a year-on-year increase of 14.802%.

However, borrowing from the CBN has declined by 94.9% compared to the same period in 2025.