Banks’ borrowing drops 89% to N126bn
Central Bank of Nigeria Reports Significant Decline in Bank Borrowing
LAGOS, Nigeria — Borrowing by commercial banks from the Central Bank of Nigeria’s (CBN) Standing Lending Facility (SLF) dropped dramatically by 89 percent in August 2026, declining to 126 billion naira from 1.19 trillion naira in July 2026. This sharp decrease indicates improved liquidity within the banking sector.
The CBN operates two primary short-term lending tools for banks: the Standing Lending Facility and the Repurchase (Repo) agreement. Under the SLF, the central bank extends loans at an interest rate 500 basis points above the Monetary Policy Rate (MPR). The Repo agreement involves the purchase of bank securities with a commitment to resell these securities at a predetermined date for a higher price.
In addition to lending, the CBN also accepts deposits from banks through its Standing Deposit Facility (SDF). According to the CBN’s latest financial data, deposits in the SDF fell by 1.14 percent to 82.99 trillion naira in August 2026, down from 83.95 trillion naira in July 2026.
Notably, the CBN has maintained the MPR at 26.5 percent along with its other policy parameters. These measures imply a reduction in borrowing costs for commercial banks, which may lead to lower lending rates for businesses and individuals.
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