Banks' Deposits with CBN Fall to N83.96 Trillion in July

In July 2026, banks and merchant banks' deposits with the Central Bank of Nigeria (CBN) decreased by 6.02% month-on-month to N83.96 trillion, down from N89.33 trillion in June 2026. This figure represents the third lowest deposit recorded with the CBN.

The decline is attributed to several factors, including Open Market Operations (OMO) sales by the CBN, government cash flow, increased lending to the real sector, and changes in interbank liquidity conditions. Mr.

David Adnori, Vice President of Highcap Securities, stated that a reduction in deposits does not necessarily indicate decreased liquidity among banks. Year-on-year, the July 2026 deposits reflect a 669.6% increase compared to N10.91 trillion in July 2025.

The CBN's monetary policy adjustments, including a cut in the Monetary Policy Rate (MPR) to 26.50% in February 2026, have influenced banks' decisions to reduce deposits. In the first seven months of 2026, banks deposited an estimated N595.4 trillion with the CBN, marking a 645.6% year-on-year increase.