According to the latest data by the apex bank, banks deposited a total of N58.099 trillion with the Central Bank of Nigeria through the standing deposit facility (SDF) between September 23 and October 13. This reveals financial institutions’ thirst for more interest as they take advantage of the adjusted asymmetric corridor.
The CBN’s monetary policy committee (MPC) cut the benchmark interest rate last month, the first time it had done so since September 2021. Aligning with the global trend, the MPC adopted a dovish stance, lowering the MPR by 50bps to 27 per cent from the previous 27.5 per cent.
Aside from this, the CBN also adjusted the asymmetric corridor around the MPR to +250bps/-250bps from +500bps/-100bps. According to data provided by the apex bank, a total of N58.099 trillion had been deposited from September 23, 2025, when the announcement was made.
This is much higher than the N26.487 trillion deposited through the SDF window at the CBN between September 1 and 22, 2025. Average daily deposits at the apex bank grew from N1.7 trillion before the announcement to N4.1 trillion after the announcement.
According to Cardinal Stone Research analysts, the asymmetric corridor adjustment meant that “banks will now borrow from and deposit with the CBN at 29.5 per cent and 24.5 per cent, respectively. Banks are likely to remain net depositors with the CBN despite adjusting the corridor, as the Standing Deposit Facility (SDF) rate remains more attractive than the 1-year NTB.”
On Monday, the Treasury Bills secondary market saw yields climb across all tenors, with 1-month, 3-month, 6-month, and 12-month rates rising 12bps, 28bps, 0.5bps, and 5bps, respectively. Nonetheless, the average NT-Bills yield edged down 1bp to 17.39 per cent, reflecting sustained bullish sentiment and strong investor demand in the secondary market.
At the close of trading on Monday, the 1-month paper had a yield of 16.1720 per cent, while the 3-, 6-, and 12-month papers closed at 16.6854, 17.3806, and 18.3711 per cent, respectively.
Meanwhile, the Nigerian interbank rates showed mixed performance on Monday, with overnight rates unchanged at 24.86 per cent following the previous week’s money market auctions and maturities. However, medium-term rates declined, with 1-month, 3-month, and 6-month tenors falling 10bps, 18bps, and 25bps, respectively. Money market funding costs were also mixed—the overnight rate dropped 7bps to 24.90 per cent, while the Open Purchase Rate held at 24.85 per cent.