Banks' Borrowing from CBN Drops 96% to N2.33 Trillion

In the first half of 2026, banks' borrowing from the Central Bank of Nigeria (CBN) fell by 96.04% year-on-year to N2.33 trillion, down from N58.91 trillion in the corresponding period of 2025. This decline indicates stronger liquidity among banks and a reduced reliance on the CBN.

The CBN's data shows that banks utilized the Standing Lending Facility (SLF) less frequently, with borrowings recorded at N1.09 trillion in January 2026 and N1.66 billion in March 2026. The total bank deposits were estimated at N511 trillion in the first half of 2026, compared to N68.94 trillion in the first half of 2025.

The CBN's recent monetary policy decisions, including retaining the Monetary Policy Rate (MPR) at 26.50%, have influenced banks' deposit strategies, leading them to prefer the CBN's deposit facilities for risk-free returns. Mr. David Adnori, Vice President of Highcap Securities, noted that banks are cautious in a challenging business environment, opting to lend to the CBN rather than extending loans to the private sector.