The Central Bank of Nigeria (CBN) sterilised over N3.57 trillion inside three days as deposit cash banks parked surplus money within the CBN’s Standing Deposit Facility (SDF).
The SDF is a window the place banks warehouse extra money for an in a single day rate of interest of about 22.8%, in line with FMDQ.
An evaluation of CBN’s {financial} information between Tuesday, February 17 and Thursday 19, 2026, highlights the size of liquidity administration operations undertaken by the apex {bank} amid sustained excessive system balances and robust demand for presidency securities.
The aggressive liquidity mop-up adopted banking system liquidity of over N4 trillion, which analysts at Coronation Analysis famous of their Nigeria Weekly Replace launched on Friday, February 13.
Regardless of the multi-trillion-naira absorptions by means of Open Market Operations (OMO) and first market issuances, banks continued to channel important funds into the SDF window.
The CBN sterilised over N3.57 trillion between Tuesday, February 17 and Thursday 19 by means of OMO gross sales, main market issuances, and sustained SDF placements, signalling a agency response to extra liquidity.
Mixed direct market devices accounted for about N1.57 trillion in withdrawals, whereas persistent SDF utilization bolstered the size of efficient sterilisation throughout the system.
Analysts say elevated liquidity displays structural and monetary dynamics reasonably than quick funding stress, as Standing Lending Facility utilization remained minimal and opening balances modest relative to coverage absorptions.
Ayokunle attributed the liquidity build-up to traditionally excessive FAAC allocations, lingering results of Methods and Means financing from the quick previous administration, and gradual {economic} restoration, noting that funds disbursed for initiatives usually re-enter the banking system.
The CBN’s multi-trillion-naira sterilisation drive comes at a major fiscal price because the apex {bank} intensifies efforts to include inflation and forestall surplus liquidity from undermining tightening goals.
Whereas vital for value stability, sustained large-scale mop-ups enhance borrowing prices and will gradual credit score development in the true economic system, leaving the CBN to stability inflation management with {economic} restoration momentum.
