In the end, a good number of banks failed and were subsequently liquidated

It shows the vulnerability of the banking system to dependence on Government deposits

And the corruption-riddled brokerage paid to Government officials and bank staff

The Banks and Government are losers in this elaborate and opaque spectrum
Definition of a Central Bank is the Bankers’ bank and the Government’s bank

Therefore Government deposits should naturally reside at the CBN only

In Nigeria, High powered money can be narrowed down to bank reserves plus currency held by the public

CBN’s new policy directive targets high powered money
50% CRR on Public Sector Deposits

Approximately N1trn debited from banking system
Short term impact:
Interest rates surge,
Naira appreciation,
Decline in ASI

Source of information: Financial Derivatives Company Limited