By Boluwatife Oshadiya| April 10, 2026
Key Points
- Banks’ deposits at CBN SDF window fall nearly 25% to ₦3.94 trillion
- System liquidity opens week at ₦6.16 trillion surplus
- Interbank rates rise despite strong liquidity conditions
Main Story
Deposit money banks reduced their placements at the Central Bank of Nigeria’s Standing Deposit Facility (SDF) window by nearly 25%, even as the financial system maintained strong liquidity levels, according to market data reviewed by BizWatch Nigeria.
Total placements declined to ₦3.94 trillion, down from the previous week, reflecting shifting liquidity management strategies by banks amid evolving market conditions.
Despite the drop, the banking system opened the week with a surplus liquidity position of ₦6.16 trillion, representing a ₦706.69 billion increase from the prior week. The liquidity boost was largely driven by ₦2.12 trillion in Open Market Operations (OMO) maturities.
However, funding pressures emerged in the interbank market. The overnight lending rate rose to 22.31%, while the Open Repo rate held steady at 22.00%. Nigerian Interbank Offered Rates (NIBOR) increased across tenors, with the overnight rate climbing 4 basis points to 22.32%.
Longer tenors also recorded significant increases, with 1-month, 3-month, and 6-month rates rising by 10bps, 43bps, and 74bps respectively.
What’s Being Said
“The decline in SDF placements suggests banks are reallocating liquidity, possibly toward higher-yield instruments,” Meristem Securities said in a note.
“Rising interbank rates despite strong liquidity indicate underlying funding pressures and short-term demand mismatches,” Cowry Asset Management stated.
What’s Next
- Treasury bills settlement is expected to moderate system liquidity
- Interbank rates will be closely watched for signs of tightening
- Further OMO activity could influence liquidity direction
Bottom Line
The Bottom Line: Nigeria’s banking system remains highly liquid, but rising funding costs point to emerging short-term pressures that could reshape money market dynamics.
 window by nearly 25%, even...){kind=link}