Pecohub Nigerian commercial banks dumped about N3.7 trillion in idle cash at the Central Bank of Nigeria (CBN) on December 24, signalling deep excess liquidity in the banking system on the eve of Christmas.
Data released by the apex bank covering December 22 to 24, 2025 shows that lenders moved aggressively to park surplus cash with the CBN, marking one of the largest single-day SDF inflows recorded in recent months.
The surge came barely two days after the CBN conducted a N1.7 trillion Open Market Operation (OMO) on December 22, a move aimed at mopping up excess liquidity. Despite that intervention, banks were still awash with cash, forcing them to channel funds into the standing facility rather than deploy them elsewhere.
The development reflects a combination of seasonal factors and limited short-term lending opportunities, as financial institutions traditionally rebalance their books toward year-end.
With credit demand subdued and risk considerations heightened during the holiday period, banks opted to hold funds at the CBN, even at relatively modest returns.
The N3.7 trillion parked by banks at the CBN is not idle money in theory, it is money that could have gone into loans for businesses, mortgages, agriculture, and consumer spending, especially during a peak festive period like Christmas.
