Banks’ internet placements on the Central Bank of Nigeria’s (CBN) Standing Deposit Facility (SDF) rose above N6 trillion following a N2.41 trillion Open Market Operations (OMO) repayment, with deposits remaining above that degree for 3 consecutive days of the week ended Friday, October 16, 2026.
This is according to the CBN’s daily banking system liquidity reports covering October 13 to 16, 2026, which recorded a pointy improve in SDF exercise instantly after the securities repayment, which launched money into the banking system.
Net SDF exercise climbed from roughly N3.86 trillion on October 13 to N6.08 trillion on October 16, representing a rise of N2.22 trillion, or 57.65%, over the four-day interval.
SDF Placements cross N6 trillion:
The CBN recorded OMO repayments totalling N2.408 trillion on October 13, representing the biggest securities repayment throughout the interval. It was additionally the one OMO repayment recorded throughout the 4 days, with no new OMO gross sales reported.
- The improve in banks’ deposit placements grew to become evident on October 14, when internet SDF exercise rose by roughly N2.21 trillion, or 57.18%, to N6.065 trillion.
- Net SDF exercise stood at roughly N3.86 trillion on October 13, earlier than the sharp improve recorded the next day.
- Placements elevated to N6.065 trillion on October 14, equal to a rise of about 91.6% of yesterday’s OMO repayment.
- SDF exercise declined marginally by N20.76 billion to N6.044 trillion on October 15.
Deposits subsequently elevated by N38.70 billion to N6.083 trillion on October 16, the very best studying within the four-day sequence.
The figures present that banks maintained elevated placements on the CBN after the preliminary improve, slightly than withdrawing the funds instantly, suggesting that the OMO maturities could have triggered placements within the SDF.
Treasury Bill gross sales take in restricted liquidity:
Government securities gross sales absorbed solely a part of the liquidity launched via OMO repayments throughout the interval. The CBN reported primary-market securities gross sales of N269.06 billion, all recorded on October 15.
- The quantity is strictly equal to the allotment from the October 14 Treasury bill auction, when subscriptions reached roughly N1.032 trillion, however the DMO allotted solely N269.06 billion rejecting roughly 74% of complete subscriptions.
- Primary-market securities gross sales totalled N269.06 billion throughout the four-day interval.
- Primary-market repayments amounted to N109.96 billion, decreasing internet absorption from these transactions to N159.10 billion.
- OMO repayments totalled N2.408 trillion, with no corresponding new OMO gross sales reported.
- Combining the recorded OMO and primary-market transactions produced a internet securities-related liquidity launch of roughly N2.25 trillion.
The figures point out that new Treasury invoice gross sales offset solely a comparatively small portion of the liquidity launched via maturing securities.
Although the October 14 public sale attracted subscriptions exceeding N1 trillion, bids that weren’t allotted didn’t lead to equal money withdrawals from the banking system.
Consequently, the amount of investor demand was considerably larger than the quantity absorbed via the public sale.
The internet securities-related launch of roughly N2.25 trillion was near the N2.22 trillion improve in SDF exercise, however the similarity doesn’t set up that the identical funds moved between the 2 accounts.
Banks preserve elevated CBN deposits:
Banks’ opening balances modified solely marginally over the 4 days regardless of the substantial securities repayments and elevated SDF placements. Opening balances rose from N195.08 billion on October 13 to N234.89 billion on October 14 earlier than declining to N198.32 billion by October 16.
The total improve in opening balances was roughly N3.24 billion, or 1.66%, in contrast with the a lot bigger motion recorded in SDF exercise.
- Opening balances stood at N199.41 billion on October 15 earlier than easing to N198.32 billion on October 16.
- Net SDF exercise remained above N6 trillion from October 14 via October 16.
- The Standing Deposit Facility permits banks to put surplus funds with the CBN and earn curiosity, making it one of many apex financial institution’s instruments for managing short-term liquidity.
The mixture of considerable SDF placements with none reported borrowing from the lending window (SLF) means that banks had been putting funds slightly than drawing on the CBN for short-term financing.
