Banks' SDF Placements Reach N6 Trillion Amid Rising Costs

As of Thursday, banks' placements at the Central Bank of Nigeria's Standing Deposit Facility (SDF) have surged to N6 trillion, marking a notable increase of N622.34 billion from the previous session. This rise is attributed to a significant growth of N596.05 billion in deposit money banks' (DMB) placements.

The financial system benefited from an inflow of N799.13 billion from maturing treasury bills, although this was partially offset by N1.01 trillion in settlements related to a treasury bill auction scheduled for March 4, 2026. Despite the robust liquidity condition, which closed the trading session at a surplus of N5.84 trillion, the average fund cost in the money market has increased by four basis points to 22.14%.

The overnight rate climbed by 7 basis points to 22.28%, while the open repo rate remained unchanged at 22.00%. Market analysts express optimism that fund activity may see a slight easing of costs amid the prevailing strong liquidity.