Nigerian Banks See 460% Surge in Deposits with CBN to N52.6 Trillion in January 2026

Nigerian banks are experiencing a significant increase in deposits with the Central Bank of Nigeria (CBN) instead of extending credit to the real sector. In January 2026, bank deposits with the CBN surged by 460% to reach N52.6 trillion.

This trend reflects excess liquidity in the financial system, prompting banks to opt for the CBN's safe and profitable overnight interest rates rather than lending aggressively to the private sector. Analysts attribute this cautious approach to concerns about weak credit quality and risk appetite.

Despite recent adjustments to monetary policy rates by the CBN, including a 50 basis point increase in the standing facilities corridor, the central bank has maintained a tight overall policy stance. Cordros Research anticipates that inflationary pressures will persist in 2026, with interest rate cuts expected to be gradual to support sustained naira stability and economic growth.