Banks’ borrowing fom CBN Drops 89% to ₦126bn

Banks’ borrowing from the Central Bank of Nigeria’s (CBN) Standing Lending Facility (SLF) declined by 89 percent to ₦126 billion in August 2026, down from ₦1.19 trillion in July 2026, reflecting higher liquidity in the banking system according to a new report by Nairametrics.
The apex bank operates two short-term lending windows for financial institutions: the Standing Lending Facility (SLF) and Repo lending.
The CBN provides funds to commercial banks through the SLF at an interest rate set at 500 basis points above the Monetary Policy Rate (MPR). It also extends credit through Repurchase (Repo) agreements, which involve purchasing securities from banks with an agreement to sell them back on a specified date at a higher price.
Also, the central bank accepts deposits from commercial banks through its Standing Deposit Facility (SDF). According to the CBN’s latest financial data for August 2026, banks’ deposits in the Standing Deposit Facility slightly declined by 1.14 percent to ₦82.99 trillion in August 2026, compared to ₦83.95 trillion recorded in July 2026.
The drop in borrowing occurred alongside the apex bank retaining the MPR at 26.5 percent while maintaining other policy parameters.
Reduced reliance on the CBN’s discount window reflects improved interbank liquidity, which could ease funding costs for financial institutions and support lower borrowing rates for businesses and individuals.