Scarcity of funds in the banking industry has prompted banks to rely on the Central Bank of Nigeria for liquidity support.
Banks’ borrowing from the apex bank is set to hit N45 trillion this year, with interest payment of N36 billion.
This represents 51 per cent and 64 per cent increase when compared with N29 trillion borrowing in 2016, with N22 billion interest.
Banks deposit placement with the CBN is expected to drop by 14.3 percent to N15.6 trillion from N18.2 trillion while interest earned by the banks will rise slightly to N5.1 billion from N4.8 billion last year.
CBN economic report for January and February, shows banks’ average monthly borrowing through its Standing Lending facility pushed by 56 per cent to N3.8 trillion from N2.5 trillion last year.
