Banks’ Borrowings from CBN Plunge 97% to ₦380 Billion in April

Banks’ borrowings from the Central Bank of Nigeria (CBN) through the Standing Lending Facility (SLF) saw a dramatic drop of 97.6% month-on-month (MoM), falling to ₦380 billion in April from ₦16.5 trillion in March 2025. This sharp decline indicates a significant improvement in liquidity within the banking system. According to financial data from the CBN, banks borrowed a total of ₦50.46 trillion in the first quarter of 2025 (Q1’25), marking a 161.5% increase compared to ₦31.25 trillion in Q1’24. The CBN offers two primary short-term lending windows for banks: the SLF and Repurchase (Repo) lending. Under the SLF, the CBN lends to banks at an interest rate 500 basis points higher than the Monetary Policy Rate (MPR). Repo transactions involve the temporary purchase of banks’ securities with an agreement to resell them later, usually at a premium. In contrast, the CBN also accepts deposits from banks through the Standing Deposit Facility (SDF), offering interest at MPR minus 100 basis points. Reflecting healthier liquidity conditions, banks’ deposits of idle funds with the CBN through the SDF rose by 3.08% MoM to ₦16.7 trillion in April, up from ₦16.2 trillion in March 2025. This trend follows a notable surge in Q1’25, when banks’ SDF placements increased by 957% quarter-on-quarter (QoQ), rising to ₦19.2 trillion from ₦1.82 trillion in Q1’24. This surge suggests stronger liquidity in the interbank money market. is married Emi Peach 20yo Big Booty Latina The growth in SDF activity is attributed to the CBN’s introduction of a single-tier remuneration structure for SDF deposits. Under this system, all SDF deposits now earn interest at MPR minus 100 basis points. With the MPR currently set at 27.5%, the effective SDF rate stands at 26.5%.