The Central Bank of Nigeria has reported that average daily deposit has significantly dropped in the last two years. The country’s average daily deposit of N84.27 billion in 246 transaction days in 2018 fell to N48.32 billion in 251 transaction days in 2019.
It is reported that Nigerian banks suffer a total of N917.5 billion in new CRR debits from the apex bank.
The data is based on the bank’s recent report published earlier in the week.
The report said “Patronage at the SDF window decreased to an average daily amount of N48.32 billion in 251 transaction days in 2019, from N84.27 billion in 246 transaction days in 2018. Similarly, the average daily interest payments on the deposits decreased to N17.22 million from N30.51 million in 2018. The reduction in volume of transactions for the year was due to the change in remunerable SDF from N7.50 billion to N2.00 billion per day per participant.”
More recently, it is anticipated that Nigerian banks might fail the ‘stress test’ if the downturn continues. The Central Bank of Nigeria has also reduced the remunerable threshold at Standing Lending Facility (SDF) from N7.50 billion to N2.00 billion per day per institution.
The value of transactions at the inter-bank funds market increased by 34.7 percent N45,426.06 billion last year compared to N33,724.98 billion in 2018, media reports said. That said, interest rates at all segments of the market reflected the level of liquidity in the country’s banking system.