Banks’ net placements at the Central Bank of Nigeria’s (CBN) Standing Deposit Facility (SDF) rose by 57.65 per cent to N6.08 trillion between October 13 and 16, 2026, following a N2.41 trillion repayment of Open Market Operations (OMO) securities that released liquidity into the banking system.
Data from the CBN’s daily banking system liquidity reports showed that net SDF placements increased from approximately N3.86 trillion on October 13 to N6.08 trillion on October 16, with deposits remaining above N6 trillion for three consecutive days.
The increase followed OMO repayments of N2.408 trillion recorded on October 13, the only OMO repayment during the four-day period. No new OMO sales were reported over the same period.
Net SDF placements rose sharply to N6.065 trillion on October 14, an increase of approximately N2.21 trillion from the previous day, before easing slightly to N6.044 trillion on October 15. Placements subsequently increased to N6.083 trillion on October 16, the highest level recorded during the period.
The sustained increase suggests that banks retained substantial liquidity within the CBN’s deposit facility following the repayment of maturing securities rather than immediately deploying the funds elsewhere.
The SDF allows banks to deposit surplus funds with the apex bank and earn interest, making it an important instrument for managing short-term liquidity in the financial system.
Government securities transactions absorbed only part of the liquidity released during the period. Primary-market securities sales totalled N269.06 billion, matching the allotment from the Treasury bill auction conducted on October 14, while primary-market repayments amounted to N109.96 billion.
This resulted in net liquidity absorption of N159.10 billion from primary-market transactions, significantly below the N2.408 trillion released through OMO repayments.
The October 14 Treasury bill auction attracted subscriptions of approximately N1.032 trillion, but the Debt Management Office (DMO) allotted only N269.06 billion, leaving about 74 per cent of subscriptions unallotted.
Although investor demand exceeded N1 trillion, only the amount allotted translated into securities purchases through the auction. The unallotted bids did not represent equivalent cash withdrawals from the banking system.
Combining the OMO repayments and primary-market securities transactions produced a net securities-related liquidity release of approximately N2.25 trillion during the four-day period.
The amount was broadly comparable with the N2.22 trillion increase in net SDF placements, although the similarity does not establish that the funds released through securities repayments were directly transferred into the CBN’s deposit facility.
Meanwhile, banks’ opening balances changed only marginally during the period. The balances increased from N195.08 billion on October 13 to N234.89 billion on October 14 before declining to N198.32 billion on October 16.
The opening balance on the final day was approximately N3.24 billion, or 1.66 per cent, higher than the October 13 level, despite the substantial increase in SDF placements.