Commercial banks’ deposits with the Central Bank of Nigeria (CBN) through the Standing Deposit Facility (SDF) surged to an all-time high of N5.5 trillion on Tuesday following the repayment of Open Market Operation (OMO) bills.
Data show that the CBN repaid N731.13 billion to investors on September 30, boosting liquidity in the banking system and pushing deposits under the SDF to record levels.
This came after a previous increase on Monday when deposits rose to N5.38 trillion, driven by inflows from Federation Account Allocation Committee (FAAC) disbursements and earlier OMO repayments.
In September alone, the CBN conducted OMO repayments worth N1.2 trillion. These included N204.9 billion on September 16, N254.9 billion on September 23, and N731.13 billion on September 30.
The heavy liquidity injections contributed to rising deposits at the apex bank.
Market data also revealed that the average yield across OMO bills fell by 44 basis points to 21 percent on Tuesday from 21.44 percent the previous day.
Yields declined across all tenors, with the January 6, 2026 OMO bill attracting strong investor demand, recording a 180 basis points drop.
Despite the sharp increase in SDF placements, banks’ opening balances slipped to N2.297 trillion on Tuesday, representing a 12.19 percent decline compared to N2.338 trillion on Monday.
The development reflects ongoing monetary policy tightening as the CBN continues to regulate liquidity, stabilize interest rates, and curb inflationary pressures in the economy.