The dependence of the Nigerian banking sector on the Central Bank of Nigeira, CBN, soared this month with banks’ borrowings from the apex bank jumping from 323.97 billion naira in August to 3.03 trillion in naira September, signalling a severe liquidity squeeze in the period.

Checks reveal that this represents a whopping 835 per cent increase over the level in August.

Data from the CBN website showed that from the beginning of this month up until the close of business on September 22, the total borrowings of banks from the CBN stood at 3.028 trillion naira. This is as against 323.97 billion naira that was accessed by banks between the beginning of August up until August 22, 2023.

The borrowings were accessed via the Standing Lending facility of the CBN. The Standing Lending Facility, SLF, is a line of short-term credit available for commercial banks to draw on when they need to meet immediate short-term withdrawals from their customers.