Nigerian Banks' Deposits with CBN Hit Record High of N64.55 Trillion, Signaling Excess Liquidity

Nigerian banks' deposits with the Central Bank of Nigeria (CBN) surged to a record high of N64.55 trillion in October 2025, representing a 27.2% increase from the previous month. The growth in bank deposits is attributed to high credit risk concerns, with banks preferring the safety of regulatory windows like the Standby Deposit Facility (SDF) over lending to the real sector.

Analysts note a significant increase in bank deposits from January to October 2025, indicating excess liquidity in the financial system. Highcap Securities Limited's Vice President, David Adnori, highlighted banks' eagerness to place excess funds with the CBN to borrow at a slower pace from the interbank market.

The data also shows a recovery in liquid conditions, with the SLF requests settling at N995.5 billion in October 2025, a 30.9% increase from the previous month.