CBN Faces Challenges as Bank Deposits Surge to N8.31tn

The Central Bank of Nigeria's (CBN) attempts to manage excess liquidity in the banking system are under renewed pressure, with banks' deposits at the apex bank increasing to N8.31tn as of 6 November 2026. This marked an increase of N347.44bn from the previous day.

On the same day, the CBN absorbed N724.32bn through an Open Market Operations (OMO) auction, revealing a persistent accumulation of surplus funds. Between 4 November and 6 November, banks' placements in the Standing Deposit Facility (SDF) rose by N1.345tn.

The CBN offered N1tn in two OMO instruments but received subscriptions totaling N1.887tn, leading to a selective allotment of only N724.32bn. The auction was smaller than the previous one on 3 November, which allotted approximately N2.95tn.

Additionally, banks' opening balances fell significantly, indicating a shift of funds into the CBN's deposit facility. The liquidity build-up occurs ahead of expected inflows of approximately N13.79tn in November, complicating the CBN's liquidity management efforts.