Facts showed that for the month of May, the overall utilisation of the Standing Lending Facility (SLF) slowed to N0.02 trillion, from N0.05 trillion in April, alongside a lesser daily usual of N0.02 trillion, indicating restricted name for for overnight liquidity assist by deposit cash banks.
Placements at the Standing Deposit Facility (SDF) window stood at N86.30 trillion a decreased perspective compared to N91.55 trillion that was placed in April, despite standard daily placement increasing marginally to N4.79 trillion from N4.56 trillion.
The decline in SDF placements, despite upper liquidity, reflected liquidity absorption across accessible advertise operations, as entire OMO allotments rose by 31.86 per cent, relative to the extent in April 2026.
Mean banking structure liquidity rose in May buoyed by maturing CBN bills, bond coupon payments and fiscal injections. The ordinary net liquidity in the banking structure stood at N5.53 trillion, a 17.16 per cent increase from N4.72 trillion in the preceding period, driven mainly by inflows from maturing CBN bills, bond coupons and disbursements by the Federation Account Allocation Committee (FAAC). According to the CBN, the “increased-than-expected subscription reflected liquidity surfeit and appealing returns.” Prevent rates ranged in the midst of 19.97 and 21.90 per cent, compared using 19.85 and 21.90 per cent, in the preceding period.
Labor at the standing facilities window reflected the liquidity conditions in the critique period as banks deposits together with the CBN far outweighed their lending from the window. Liquidity conditions were added shaped by CRR maintenance and FX-connected activities, supporting stability in compact term participate rates.
As businesses persist to strive towards finding funding, a complete of N14.4 trillion was staked on Key Bank of Nigeria (CBN) liquidity mopping instruments including banks depositing N86.3 trillion in the apex bank in the month of May.
Figures from the CBN Economic Announce for May showed that financial institutions as well as institutional investors had pulled in a whole subscription of N14.4 trillion in May for the Receptive Advertise Operations (OMO) auctions of the apex bank.
The CBN regularly conducts OMO auctions to oversee excess liquidity in the financial structure and in May, it offered N3.6 trillion which attracted N14.4 trillion of which it in time allotted N12.54 trillion.
This was extra than the N10.6 trillion that chased following N3 trillion OMO bills in April of which N9.51 trillion was allotted.
Source: N14.4trn Chases N3.6trn CBN Bills As Small Businesses Struggle For Funding
