Commercial banks’ deposits with the Central Bank of Nigeria (CBN) have surged by a staggering 783% year-on-year, reaching an all-time high of ₦79.8 trillion as of June 2025, according to data obtained from the apex bank.
This significant increase represents a sharp rise from the ₦9.04 trillion recorded in the same period in 2024. Analysts attribute the dramatic growth to the CBN’s tightened monetary policy stance, particularly the aggressive mop-up of excess liquidity through open market operations (OMO) and changes to the Cash Reserve Ratio (CRR).
The apex bank has intensified efforts to curb inflation and stabilize the naira by absorbing more liquidity from the banking system. This move, while aimed at improving macroeconomic stability, has also led to a decline in funds available for lending to the private sector.
Economists have raised concerns that the high volume of sterilized funds could constrain economic growth if credit to the real sector continues to dwindle. However, others argue that the strategy is necessary to combat inflation, which has remained above 20% in recent months.
CBN Governor Olayemi Cardoso has maintained that the monetary authority will continue deploying tools to control money supply and tame inflationary pressures, urging banks to support real sector lending through targeted interventions and financial inclusion strategies.
