Banks’ borrowing from the Central Bank of Nigeria’s (CBN) Standing Lending Facility, SLF, declined by 89 percent to N126 billion in August 2026 from N1.19 trillion in July 2026, reflecting higher liquidity in the banking system.
The CBN has two short term lending windows for banks: the Standing Lending Facility (SLF) and Repo lending.
The apex bank lends money to banks through the SLF at interest rate of 500 bases points (bps) above the Monetary Policy Rate (MPR), and it also lends money to banks through Repurchase (Repo) arrangement, which involves the purchase of banks’ securities with the agreement to sell back at a specific date and usually for a higher price.
On the other hand, the CBN accepts deposits from banks through its Standing Deposit Facility (SDF).
Banks’ borrowing drops 89% to N126bn Banks’ borrowing from the Central Bank of Nigeria’s (CBN) Standing Lending Facility, SLF, declined by 89 percent to N126 billion in August 2026 from N1.19 trillion in July 2026, reflecting higher liquidity in the banking system.The CBN has two short term lending windows for banks: the Standing Lending Facility (SLF) and Repo lending.The apex bank lends money to banks through the SLF at interest rate of 500 bases points (bps) above the Monetary Policy Rate (MPR), and it also lends money to banks through Repurchase (Repo) arrangement, which involves the purchase of banks’ securities with the agreement to sell back at a specific date and usually for a higher price.On the other hand, the CBN accepts deposits from banks through its Standing Deposit Facility (SDF).According to CBN’s latest Financial Data for August 2026, banks’ deposits in the CBN’s Standing Deposit Facility, SDF, declined by 1.14 percent to N82.99 trillion in August 2026 from N83.95 trillion in July 2026.Recall that the apex bank retained the MPR at 26.5 percent while retaining other policy parameters.This implies reduction in the cost of commercial banks borrowing from the CBN resulting in reduced lending rates for businesses and individuals.
According to CBN’s latest Financial Data for August 2026, banks’ deposits in the CBN’s Standing Deposit Facility, SDF, declined by 1.14 percent to N82.99 trillion in August 2026 from N83.95 trillion in July 2026.
Recall that the apex bank retained the MPR at 26.5 percent while retaining other policy parameters.
This implies reduction in the cost of commercial banks borrowing from the CBN resulting in reduced lending rates for businesses and individuals.
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