The Central Bank of Nigeria (CBN) has seen its lending to deposit money banks in the country increase in recent times, hitting N671.47 billion within December 11 – 15, 2017 alone.
According to The Punch, quoting data from the CBN Standing Lending Facility (SLF) window, which helps banks support their liquidity shortfalls and meet trading obligations on short term basis, Nigerian deposit money banks borrowed N178.02bn, N135.3bn, N123.77bn, N116.73bn and N117.64bn, respectively between the time frame.
However, the N671.47 billion borrowed between December 11-15 is 34 per cent lower than the N1.019tn the banks borrowed using the instrumentality of the SLF window between December 4-8.
In November alone, the banks borrowed N2.77 billion in total, with N154 billion the average amount.
Experts have blamed the increased borrowing by deposit money banks from the CBN, which is the banks’ last resort, in recent times on the back of liquidity issues in the economy.