Economic and Financial Review


Central Bank of Nigeria


Liquidity Management, Nigeria, Monetary Policy Instruments, Cash Reserve Requirement, Liquidity Ratio, Open Market Operations, Nigerian Treasury Bills, Reverse Repo, Repo, Repurchase Agreement, CBN Standing Facilities, Information Technology


This article discusses the Central Bank of Nigeria (CBN) standing facilities and their effectiveness in reducing interbank interest rate volatilities as well as the challenges that have been faced by both the CBN and market operators in the implementation. The paper is organized into six sections. Following this introduction in section II, the CBN indirect monetary policy instruments are discussed as a prelude to the introduction of the standing deposit/lending facilities in December 2006. The CBN standing facilities as instruments of liquidity management are discussed in section III. Some of the countries that have adopted the policy instruments are surveyed in section IV. In section V, the progress that has been made is highlighted while the challenges being faced in the implementation are mentioned in section VI. The paper is concluded in section VII.

Author Bio

Olekah, J. K. A. is the Director, Banking Operations Department, Central Bank of Nigeria, Abuja.

Publication Title

CBN Economic and Financial Review





Recommended Citation

Olekah, J. K. A. (2007). Standing Facilities and Liquidity Management in Nigeria: Progress so Far and Challenges Under an IT Environment. CBN Economic and Financial Review, 45(4), 109-128.

Included in

Economics Commons



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