CBN Sterilizes ₦3.57 Trillion in Three Days Amid Liquidity

Between February 17 and February 19, 2026, the Central Bank of Nigeria (CBN) undertook significant liquidity management operations, sterilizing ₦3.57 trillion as banks utilized the Standing Deposit Facility (SDF) to park surplus cash. The overnight interest rate was reported at 22.8%, according to FMDQ analysis.

Despite the substantial absorption of liquidity through open market operations (OMO) and primary market issuances, banks continued to channel significant funds into the SDF, indicating a firm response to excess liquidity. Analysts from Coron Research noted that the persistent withdrawal of ₦1.57 trillion from the SDF reinforced the scale of sterilization across the banking system.

The CBN's actions aim to control inflation and prevent surplus liquidity from undermining price stability, as the apex bank intensifies efforts to manage liquidity in the context of gradual economic recovery and historical high allocations from the Federation Account Allocation Committee (FAAC).