Suara Sherif
The Central Bank of Nigeria (CBN) lending to commercial banks through its Standing Lending Facility (SLF) fell sharply by 89 per cent in August 2026, dropping to N126 billion from N1.19 trillion recorded in July.
The steep decline, according to the apex bank’s latest financial data, reflects improved liquidity in the banking system, with banks relying less on short-term CBN funding to meet their obligations.
The SLF is one of the CBN’s two short-term lending windows.
Banks access the facility at 500 basis points above the Monetary Policy Rate, which the apex bank has maintained at 26.5 per cent.
The second window, repo lending, involves the purchase of bank securities with an agreement to resell them later.
On the deposit side, banks placed N82.99 trillion in the CBN’s Standing Deposit Facility during August, representing a marginal 1.14 per cent decline from N83.95 trillion in July.
The reduced reliance on CBN borrowing, alongside the high level of funds parked with the regulator, points to relatively strong liquidity conditions across the banking sector.
If sustained, the trend could support increased lending and economic activity, particularly for small and medium sized enterprises that rely on bank financing.
It could also ease funding pressures and potentially create room for lower lending rates for businesses and households.
