Nigerian banks parked massive idle funds at the CBN, highlighting excess liquidity and cautious lending ahead of Christmas.
Nigerian commercial banks deposited N3.7 trillion into the Central Bank of Nigeria’s (CBN) Standing Deposit Facility (SDF) on December 24, 2025, marking one of the biggest liquidity surges in recent months. CBN data show deposits jumped by N1.2 trillion in 24 hours, rising from N2.47 trillion on December 23 to N3.67 trillion.
The surge came despite the CBN’s earlier N1.7 trillion Open Market Operation (OMO) aimed at mopping up excess cash. Banks’ opening balances at the CBN also rose, signaling strong liquidity ahead of the festive period.
Analysts say banks are choosing the SDF’s 22.5% overnight return over lending, reflecting caution amid tight monetary conditions. Despite trillions raised and repaid through OMO bills since November, liquidity remains high.
The trend suggests a wait-and-see banking sector and a shift by the CBN toward passive liquidity management as 2026 approaches.
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