Nigerian industrial banks deposited a staggering N3.7 trillion into the Central Bank of Nigeria’s (CBN) Standing Deposit Facility (SDF) on December 24, signaling one of many highest liquidity surges in months.
That is based on {financial} information from the CBN masking December 22–24, 2025, which confirmed a pointy enhance in idle fund placements simply forward of Christmas.
The spike got here regardless of the apex {bank}’s earlier liquidity mop-up by way of a N1.7 trillion Open Market Operation (OMO) on December 22, revealing persistent extra money within the {financial} system.
Based on CBN’s {financial} data, {bank} placements within the SDF jumped from N2.47 trillion on December 23 to N3.67 trillion on December 24, a N1.2 trillion enhance inside 24 hours.
Analysts say the surge in liquidity can also be an indication of a cautious lending surroundings the place banks desire to lock funds in safe devices just like the SDF, which yields in a single day curiosity of round 22.5%, as an alternative of increasing credit score portfolios amid prevailing financial tightening.
The information recommend the apex {bank} might be avoiding recent short-term debt issuances, to permit the market to recalibrate after intense OMO operations over the previous two months.
On December 23 alone, the CBN processed an OMO compensation value N1.14 trillion, a part of its bigger issuance-repayment cycle that noticed about N22.3 trillion in liquidity exercise in simply eight weeks.
Whereas cease charges throughout these OMO auctions ranged between 19% and 22%, the CBN has signaled a shift to passive liquidity administration—opting to make use of the SDF window moderately than problem new debt.
This method not directly helps financial tightening whereas minimizing the price of additional curiosity funds, which already neared N2 trillion for November–December auctions.
As 2025 winds down, business observers recommend that the CBN might resume extra aggressive OMO operations in early 2026 to stabilize inflation, help FX markets, and probably handle authorities financing necessities.
The large deposit on the SDF displays rising unease inside the banking sector concerning lending, in addition to the CBN’s evolving technique to regulate liquidity with out consistently issuing new debt.
Excessive ranges of idle money may additionally point out restricted funding alternatives in the true financial system or warning amid macroeconomic uncertainties.
For traders, it alerts a banking sector in wait-and-see mode and for policymakers, it factors to potential shifts in liquidity and inflation management methods heading into 2026.
