Banks cut their deposits with the Central Bank of Nigeria (CBN) through the Standing Deposit Facility (SDF) by N941.85 billion to N3.76 trillion on October 7, 2026, marking the largest single-day reduction since September 30.
CBN data showed that SDF placements fell from N4.70 trillion on October 6 to N3.76 trillion the following day.
The sharp decline comes after banks’ overnight deposits with the apex bank had risen to N4.86 trillion on October 5 and follows a period of elevated SDF placements in September.
The movement comes against the backdrop of the Monetary Policy Committee’s decision to cut the Monetary Policy Rate (MPR) by 350 basis points to 23% on September 22, while retaining key reserve requirements.
The latest reduction brought banks’ SDF deposits below the N4 trillion mark after the balance had remained above that level through most of the recent period.
The latest data points to a substantial reduction in the amount of liquidity banks placed overnight with the CBN through the facility.
Banks’ SDF placements had reached significantly higher levels in September, with the balance exceeding N6 trillion on several occasions before declining towards the end of the month.
The data shows considerable swings in banks’ overnight placements with the CBN, with the balance moving sharply between higher and lower levels over individual trading days.
The movement in SDF deposits follows the CBN’s latest monetary-policy decision, which reduced the benchmark interest rate while leaving key reserve requirements unchanged.
The MPC reduced the MPR by 350 basis points to 23% on September 22, while resetting the policy corridor around the MPR at +50 basis points and -300 basis points.
The policy decision provides the latest monetary-policy context for the movement in banks’ liquidity placements with the CBN.
