Seven Nigerian banks reported a total of N18.82tn in restricted deposits with the Central Bank of Nigeria as of March 31, 2025, up from the N17.54tn recorded in December 2024. Access Holdings led the pack with N8.64tn locked in, an increase of N1.58tn or 22.4 per cent, from N7.06tn in December 2024.
The funds, classified under various components such as mandatory reserve deposits, special cash reserve requirements, and differentiated cash reserve schemes, are not available for banks’ day-to-day operations. These reserves are held with the apex bank in line with regulatory obligations and monetary policy controls.
These deposits form part of the regulatory tools used by the CBN to manage the money supply, control inflation, and maintain monetary stability. CRR, which stands for Cash Reserve Ratio, is the percentage of a bank’s total deposits that must be kept with the CBN as a reserve and cannot be used for lending or investment.
Access Holdings reported the highest restricted deposit among the banks, with N8.64tn as of March 2025. The amount changed compared to its December 2024 figure, also recorded at N7.06tn. This figure includes restricted deposits and other assets as listed in its financial notes.
The bank also mentioned that the restricted deposit with Afrexim comprises a $5m minimum balance expected to be maintained at all times for the duration of the $300m Afrexim term loan facility granted to the company.
In the period under review, United Bank for Africa recorded N3.46tn in restricted deposits in March 2025, marking a decline of N470bn or 12 per cent from N3.93tn in December 2024.
Guaranty Trust Holding Company saw an increase of N208bn, or 10.6 per cent, to N2.17tn in March from N1.96tn in December 2024. The bank clarified that these funds represent the CBN-mandated cash reserve requirement and are not accessible for daily operations.
Fidelity Bank’s restricted deposits rose by 4.4 per cent to N1.66tn in March 2025 from N1.59tn in December 2024. The balance includes N1.36tn in mandatory reserves and N221bn under the special cash reserve.
Stanbic IBTC’s cash reserve grew by 5.7 per cent to N758bn in March 2025 from N717bn in December 2024. The funds are held with the CBN and are unavailable for daily use.
FCMB Group reported a decline in restricted deposits to N1.24tn in March 2025 from N1.44tn in December 2024, a drop of N198bn or 13.7 per cent.
Wema Bank’s restricted deposits increased by 6.3 per cent to N892bn in March 2025 from N839bn in December 2024. The balance includes N26bn under the DCRR scheme aimed at stimulating real-sector financing.
Meanwhile, the Monetary Policy Committee of the Central Bank of Nigeria has maintained the Monetary Policy Rate at 27.50 per cent, marking the second straight time it has kept the rate unchanged in 2025.
CBN Governor Olayemi Cardoso stated recently that “the committee was unanimous in its decision to hold policy and thus decided as follows: retain the MPR at 27.50 per cent,” explaining that the decision allows members to assess short-term economic trends more effectively.
In addition to the MPR, the CBN also kept the asymmetric corridor at +500/-100 basis points, the Cash Reserve Ratio for Deposit Money Banks at 50.00 per cent, and for Merchant Banks at 16.00 per cent, while maintaining the Liquidity Ratio at 30.00 per cent.