Nigerian Banks Withdraw N942bn from CBN Facility

On October 7, 2026, Nigerian banks withdrew N941.85 billion from the Central Bank of Nigeria's (CBN) Standing Deposit Facility (SDF), resulting in total placements dropping to N3.76 trillion from N4.70 trillion the previous day. This decline of approximately 20 percent is the largest one-day reduction since the end of September.

Prior to this, banks had placed N4.86 trillion with the CBN on October 5, which decreased to N4.70 trillion the following day. The latest withdrawal brings SDF placements to their lowest level since September 30, when deposits fell from N6.28 trillion to N4.55 trillion.

The SDF allows banks to deposit excess funds overnight with the CBN without collateral, serving as a tool for managing liquidity. This movement follows the CBN's Monetary Policy Committee's decision on September 22 to reduce the Monetary Policy Rate by 350 basis points to 23 percent, the first major adjustment in the current policy cycle.

The data indicates ongoing fluid liquidity conditions in the banking system.