Commercial banks’ borrowing from the Central Bank of Nigeria’s (CBN) declined by 89 percent to N126 billion in August 2026 from N1.19 trillion in July 2026.
This reflects higher liquidity in the banking system.
The Vanguard reported that CBN has two short term lending windows for banks: the Standing Lending Facility (SLF) and Repo lending.
The apex bank lends money to banks through the SLF at interest rate of 500 bases points (bps) above the Monetary Policy Rate (MPR).
And it also lends money to banks through Repurchase (Repo) arrangement, which involves the purchase of banks’ securities with the agreement to sell back at a specific date and usually for a higher price.
