Nigerian banks deposited ₦3.7 trillion in excess cash with the Central Bank of Nigeria on December 24, reflecting strong liquidity despite recent efforts to tighten monetary conditions.
The amount, placed through the Standing Deposit Facility, rose by about ₦1.2 trillion in a single day, as banks opted to earn interest with the CBN rather than expand lending amid economic uncertainty.
Analysts say the trend signals cautious lending behavior, which could weigh on private-sector credit growth going into the new year. Visit www.jocomms.com for more news.