Sure guy, the banks just dumped N8.31 trillion into the CBN’s Standing Deposit Facility while the central bank only managed to mop up N724 billion in its OMO auction. That tells us the liquidity pool is still massive, but the banks are choosing to keep the cash locked up instead of lending it out. The move is a clear sign of risk‑aversion – they prefer the safety of the SDF over the uncertainty of the market, especially when the CBN’s auction barely dented the overall liquidity. This hoarding hurts small traders and entrepreneurs who need credit to grow, and it fuels a stagnant credit cycle that the government has been trying to break. On the flip side, the CBN’s selective allotment shows they are trying to temper inflation without choking the system, but if banks keep comot body from the real economy, the policy will have little bite. The real trade‑off is between safeguarding the banking sector and spurring productive lending. We need a push – maybe higher repo rates or tighter SDF terms – to force banks to move money out of the vault and into the streets where it can generate jobs and growth.
Banks dey park cash at CBN – why the economy no dey move
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