What you should know about 75% CRR for non-TSA parastatals
The Monetary Policy Committee of the Central Bank of Nigeria (CBN) during its 302nd meeting introduced a new monetary policy directive, mandating that 75 percent of non-Treasury Single Account (non-TSA) public sector deposits be held as reserves by commercial banks. The announcement was made on Tuesday alongside interest rates cut by 50 basis point from […]
The Monetary Policy Committee of the Central Bank of Nigeria (CBN) during its 302nd meeting introduced a new monetary policy directive, mandating that 75 percent of non-Treasury Single Account (non-TSA) public sector deposits be held as reserves by commercial banks.
The announcement was made on Tuesday alongside interest rates cut by 50 basis point from 27.5 per cent to 27 per cent
The CBN governor had premised the decision of the MPC on the recent decline of inflation.
The National Bureau of Statistics (NBS) had announced that the country’s inflation rate dropped to 20.12 per cent in August 2025.
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According to the monthly report of inflation released by the NBS, the August figure showed a decrease of 1.76 per cent, as against the figure of 21.68 recorded in July 2025.
What 75 per cent CRR means for non TSA parastatals
According to the Central Bank, the decision to impose the 75 per cent CRR is aimed at strengthening liquidity control and shielding the financial system from fiscal-driven volatility.
“Public sector funds, particularly those outside the TSA framework, have been identified as a major source of liquidity surges. By isolating 75 percent of such deposits, we are safeguarding the economy from undue fiscal liquidity pressures,” Cardoso said
Consequently, checks by Daily Trust show that Non-TSA public deposits are funds from government agencies, parastatals, and state-owned enterprises lodged in commercial banks instead of being consolidated into the TSA platform hosted by the Federal government.
Therefore, the new policy by the CBN means that banks must now retain 75 per cent of such deposits, locking them away at the CBN and rendering them inaccessible for lending or investment by these agencies or parastatals of government.
Daily Trust understands that the measure according to the CBN is not only targeted at curbing excess liquidity but also enhancing monetary policy transmission by improving the functioning of the interbank market.
The CBN’s latest policy stance also seeks to tighten control over public sector liquidity while maintaining monetary conditions to encourage lending and investment.
Right step to take – Expert
Reacting to the development, the Executive Director of the Centre for Promotion of Private Enterprise (CPPE) while commending the Central Bank of Nigeria (CBN) and its Monetary Policy Committee (MPC) for reducing interest rates noted that the monetary side is being careful with the impact fiscal activities could have on the economy. “A notable new measure was the introduction of a 75 per cent CRR on non-TSA public sector deposits, aimed at containing excess liquidity risks that could arise from fiscal operations.
“The decision to impose a 75 percent CRR on non-TSA public sector deposits is a prudent measure to prevent excessive fiscal-driven liquidity injections from destabilizing the financial system,” he said.
He however noted that while monetary easing is a welcome development, CPPE emphasises that fiscal policy must play a complementary role to fully unlock growth potential.
He stressed that the government should prioritize critical infrastructure investment, strengthen the regulatory and institutional framework, address security challenges and strengthen the regulatory and institutional framework to unlock the nation’s growth potential.