CBN sterilises N3.57trn in 3-days as banks park surplus money at SDF 

The Central Bank of Nigeria (CBN) sterilised over N3.57 trillion inside three days as deposit cash banks parked surplus money within the CBN’s Standing Deposit Facility (SDF).

The SDF is a window the place banks warehouse extra money for an in a single day rate of interest of about 22.8%, based on FMDQ.

An evaluation of CBN’s monetary information between Tuesday, February 17 and Thursday 19, 2026, highlights the dimensions of liquidity administration operations undertaken by the apex bank amid sustained excessive system balances and powerful demand for presidency securities.

The aggressive liquidity mop-up adopted banking system liquidity of over N4 trillion, which analysts at Coronation Analysis famous of their Nigeria Weekly Replace launched on Friday, February 13.

Regardless of the multi-trillion-naira absorptions via Open Market Operations (OMO) and first market issuances, banks continued to channel important funds into the SDF window.

What the information is saying 

The CBN sterilised over N3.57 trillion between Tuesday, February 17 and Thursday 19 via OMO gross sales, main market issuances, and sustained SDF placements, signalling a agency response to extra liquidity.

• System liquidity strengthened midweek, closing at N4.32 trillion on Friday, whereas SDF placements rose sharply from N2.52 trillion in the beginning of the week to N4.26 trillion.
• The CBN recorded internet liquidity absorption of about N435 billion on February 17 after OMO gross sales of N2.30 trillion have been offset by N1.87 trillion in maturities.
• On February 19, the CBN booked treasury payments and bond gross sales totalling N1.91 trillion towards N765.89 billion in repayments, leading to a internet absorption of roughly N1.14 trillion.
• Banks maintained almost N3 trillion in every day SDF placements, together with N3.35 trillion on February 17 and about N2.97 trillion on February 19, regardless of ongoing mop-up operations.

Mixed direct market devices accounted for about N1.57 trillion in withdrawals, whereas persistent SDF utilization strengthened the dimensions of efficient sterilisation throughout the system.

Knowledgeable views

Analysts say elevated liquidity displays structural and financial dynamics relatively than rapid funding stress, as Standing Lending Facility utilization remained minimal and opening balances modest relative to coverage absorptions.

• “Liquidity circumstances strengthened notably from midweek, closing at N4.32 trillion on Friday,” analysts at Coronation Analysis acknowledged.
• “Correspondingly, placements on the Standing Deposit Facility elevated markedly… reflecting elevated surplus reserves within the banking system.”
• “There’s nothing unhealthy in having liquidity within the system, but it surely have to be at a selected stage,” mentioned Olubunmi Ayokunle, Head of Monetary Establishments Rankings at Augusto & Co.
• “If the federal government pursues expansionary spending — infrastructure, financial stimulus — you’ll inevitably see excessive liquidity. The important thing subject is administration.”

Ayokunle attributed the liquidity build-up to traditionally excessive FAAC allocations, lingering results of Methods and Means financing from the rapid previous administration, and gradual financial restoration, noting that funds disbursed for tasks usually re-enter the banking system.

What it’s best to know

The CBN’s multi-trillion-naira sterilisation drive comes at a big fiscal price because the apex bank intensifies efforts to comprise inflation and stop surplus liquidity from undermining tightening aims.

• In 2024 alone, liquidity administration bills reportedly surged to about N3 trillion attributable to aggressive OMO and market operations.
• The CBN has absorbed almost N2.87 trillion via main market devices in 2025 amid elevated debt issuance.
• Persistent high-yield issuances have strengthened banks’ desire for risk-free devices over personal sector credit score growth.

Whereas obligatory for worth stability, sustained large-scale mop-ups enhance borrowing prices and will sluggish credit score progress in the actual economic system, leaving the CBN to steadiness inflation management with financial restoration momentum.