• Home
  • Advertisement
  • Contact Us
  • Privacy & Policy
  • Other Links
Sunday, August 17, 2025
  • Login
  • Register
9Ja Spectators
  • Home
  • Politics
  • Business
  • Education
  • Entertainment
  • Life
  • Tech
  • World News
No Result
View All Result
9Ja Spectators
  • Home
  • Politics
  • Business
  • Education
  • Entertainment
  • Life
  • Tech
  • World News
No Result
View All Result
9Ja Spectators
No Result
View All Result
Home Business

GTB, Access, UBA, Zenith other banks experience Naira shortage

Reporter by Reporter
August 8, 2023
in Business
Reading Time: 2 mins read
A A
0
GTB, Access, UBA, Zenith other banks experience Naira shortage
152
SHARES
Share on FacebookShare on TwitterShare on WhatsAppShare on Telegram

Following the Naira Scarcity, Nigerian banks are currently facing cash crisis as they have rapidly increased borrowing from the Central Bank of Nigeria (CBN).

Nigerian banks are grappling with a severe cash crisis, resorting to borrowing approximately N755.65 billion from the Central Bank of Nigeria (CBN) to maintain liquidity. The surge in borrowing comes amidst a backdrop of liquidity challenges and inflation concerns, with signs pointing towards stress in the banking sector.”

In response to a mounting cash crisis, Nigerian banks have significantly escalated their reliance on the Central Bank of Nigeria (CBN) for funding. The banks have collectively borrowed an estimated N755.65 billion from the CBN as a means to bolster their cash liquidity. This upsurge in borrowing follows a period of economic turmoil and inflationary pressures that have strained the financial landscape.

RelatedPosts

Stop Spreading Lies About My Late Father – Apostle Babalola’s Daughter Warns After Pastor Fatoyinbo’s Comment (VIDEO)

ParrotXtra Media Sympathizes With Yinka Ayefele Over Ibadan Fire Incident

Comfort Emmason Breaks Silence, Shares Full Account of Ibom Air Incident Two Days After Release

The CBN had previously grappled with excess liquidity, taking measures to counteract the inflationary repercussions of such an abundance of funds. Now, indications suggest that the banking sector is confronting a liquidity squeeze, compelling banks to turn to the CBN as a vital source of cash infusion.

While a handful of major banks have managed to maintain a certain level of liquidity, reports are revealing that the broader money market is already feeling the strain of reduced cash availability. This scarcity is negatively impacting transactions involving treasury instruments, leading to widespread repercussions.

The statistics underscore the seriousness of the situation. Borrowing from the CBN by Nigerian banks has surged by a staggering 107% month-on-month, culminating in a total of N755.64 billion borrowed in July alone. The apex bank offers banks two short-term lending avenues: the Standing Lending Facility (SLF) and the Repurchase arrangement.

According to Vanguard’s reporting, the SLF mechanism involves the CBN extending loans to commercial banks at interest rates set 100 basis points above the Monetary Policy Rate (MPR).

Alternatively, the Repurchase arrangement enables banks to access funds by pledging or selling their financial assets to the CBN, with a commitment to repurchase them at a later date and at an elevated price.

On the flip side, the CBN facilitates deposits from banks through its Standing Deposit Facility (SDF), with interest payments pegged at 300 basis points below the Monetary Policy Rate.

Official information from the CBN paints a vivid picture of the unfolding scenario. In the month of July, banks collectively borrowed a staggering N755.64 billion through the SLF, reflecting an astonishing 107% escalation from the N365.06 billion borrowed in the preceding month of June.

This narrative underscores the ongoing challenges that Nigerian banks face as they navigate the complex landscape of cash liquidity and economic stability.

•Source: GoldenNewsNg

Tags: 9jaspectatorsNaira sash crunchNigerian banks experience Naira shortagespectatorsng
Previous Post

Angry Ghanaians invade room of co-tenant having am0r0us affair with g@y partner for disturbing them with moans (VIDEO)

Next Post

Subsidy removal will reduce carbon dioxide emissions – Shettima

Related Posts

Business

9mobile Rebrands as T2, Unveils Bold Digital-First Strategy

by Reporter
Adelabu Meets Energy Commissioners, Seeks Alignment on Power Market Reforms (VIDEO)
Business

Adelabu Meets Energy Commissioners, Seeks Alignment on Power Market Reforms (VIDEO)

by Reporter
13th Ace Mall Goes Live in Sagamu, Grand Opening Set for August 2
Business

13th Ace Mall Goes Live in Sagamu, Grand Opening Set for August 2

by Reporter
Next Post
Subsidy removal will reduce carbon dioxide emissions – Shettima

Subsidy removal will reduce carbon dioxide emissions - Shettima

Leave a ReplyCancel reply

Stop Spreading Lies About My Late Father – Apostle Babalola’s Daughter Warns After Pastor Fatoyinbo’s Comment (VIDEO)

Stop Spreading Lies About My Late Father – Apostle Babalola’s Daughter Warns After Pastor Fatoyinbo’s Comment (VIDEO)

by Reporter
0

Eunice Wuraola Ogini, the first daughter of the late Apostle Joseph Ayo Babalola, has issued a stern warning to pastors...

ParrotXtra Media Sympathizes With Yinka Ayefele Over Ibadan Fire Incident

ParrotXtra Media Sympathizes With Yinka Ayefele Over Ibadan Fire Incident

by Reporter
0

ParrotXtra Media Network, publishers of ParrotXtra Magazine and PMParrotng.com, has expressed deep sympathy with Dr. Yinka Ayefele, MON, following the...

New Video Raises Questions Over Ibom Air Passenger Removal, Suggests Possible Set-Up (WATCH)

Comfort Emmason Breaks Silence, Shares Full Account of Ibom Air Incident Two Days After Release

by Reporter
0

Two days after regaining her freedom from remand, Comfort Emmason — the Nigerian passenger whose clash with an Ibom Air...

Bye Election: Oyo SDP Urges Voters to Shun Parties Branded as Terrorists by Canadian Court

Bye Election: Oyo SDP Urges Voters to Shun Parties Branded as Terrorists by Canadian Court

by Reporter
0

The Social Democratic Party (SDP) in Oyo State has urged residents to reject candidates from political parties recently branded as...

No Result
View All Result
  • Home
  • Politics
  • Business
  • Education
  • Entertainment
  • Life
  • Tech
  • World News

© 2023 SpectatorsNG

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In