CBN: Borrowing rises to N8.7tn in two months in apex bank liquidity mop-up

reports that following the Central Bank of Nigeria (CBN) sustained drive to mop-up liquidity; deposit money banks and merchant banks in the country have in the first two months of 2024, borrowed a whooping N8.7 trillion from the apex bank. This is a 787 percent Year-on-Year (YoY) increase from N982 billion banks and merchant banks borrowed from CBN in the first two months of 2023. The borrowing was a result of the financial institutions’ bid to meet their daily business obligations. Analysis of Data released by CBN revealed that the banks’ borrowing from the CBN via the Standing Lending Facility (SLF) increased significantly in February 2024 amid the double-digit inflation rate, scarcity of foreign exchange, and liquidity mop-up by the apex banking regulating body.