Banks’ deposits with the Central Bank of Nigeria (CBN) through the Standing Deposit Facility (SDF) fell by N941.85 billion to N3.76 trillion on October 7, 2026, signalling a sharp decline in overnight liquidity placements with the apex bank.
CBN data showed that SDF placements declined from N4.70 trillion on October 6 to N3.76 trillion a day later.
The latest decline represents the largest single-day reduction in SDF balances since September 30, when banks’ placements fell from N6.28 trillion to N4.55 trillion.
The SDF balance had risen to N4.86 trillion on October 5 before declining to N4.70 trillion the following day.
The latest movement comes amid significant fluctuations in banks’ overnight placements with the CBN in recent weeks.
SDF placements reached N7.34 trillion on September 23 and peaked at N7.52 trillion on September 24. The balance subsequently fell to N5.90 trillion on September 25 before rising to N6.01 trillion on September 28.
The balance stood at N6.28 trillion on September 29 before dropping sharply to N4.55 trillion on September 30.
The October 7 balance of N3.76 trillion is N3.76 trillion below the September 24 peak, highlighting the sharp reversal in banks’ use of the liquidity-absorption facility.
The Standing Deposit Facility is an overnight, non-collateralised instrument used by the CBN to absorb excess liquidity from the banking system.
The movement also comes after the Monetary Policy Committee cut the Monetary Policy Rate by 350 basis points to 23 per cent on September 22.
The MPC retained the Cash Reserve Ratio for commercial banks at 45 per cent and that of merchant banks at 16 per cent. It also maintained the 75 per cent CRR on non-Treasury Single Account public sector deposits.
The policy rate was reduced alongside a reset of the interest-rate corridor around the MPR to +50 basis points and -300 basis points.
The decline in SDF placements therefore provides an indication of changing liquidity conditions within the banking system following the CBN’s latest monetary policy adjustment.