The Central Bank of Nigeria, CBN, has injected a combined N3.81 trillion into the banking system through repayments on Open Market Operations, OMO, and other maturing instruments, pushing system liquidity significantly higher in mid-September.
Financial market data from the apex bank showed that N3.056 trillion in OMO maturities was repaid on September 15, while another N748.64 billion was repaid through the primary market on September 16.
The inflows came at a time when banks were already holding substantial surplus funds, with deposits through the CBN’s Standing Deposit Facility (SDF) rising sharply.
On September 16 alone, banks placed N4.891 trillion with the CBN through the SDF, representing a significant increase from the N2.118 trillion recorded the previous day.
The development highlights the amount of liquidity currently circulating within the banking system, despite the CBN’s continued use of monetary-policy instruments to manage excess cash.
Banks opened September 16 with N251.25 billion, compared with N364.78 billion at the start of the previous day.
The N3.056 trillion OMO repayment on September 15 was subsequently reflected in the SDF, as banks sought to place surplus funds with the apex bank. The OMO repayment was also about N938 billion higher than the N2.118 trillion placed at the SDF that day.
Over the two-day period, banks placed a combined N7.01 trillion at the SDF, substantially above the N3.81 trillion released through OMO and primary-market repayments.
The liquidity movement broadly aligns with an earlier projection by the Financial Markets Dealers Association (FMDA), which estimated total liquidity inflows of N3.56 trillion for the week.
According to the projection, OMO maturities were expected to account for about N3.06 trillion, representing roughly 86 per cent of the anticipated inflows. That projection was almost exactly matched by the N3.056 trillion OMO repayment made by the CBN on September 15.
Treasury Bills maturities were also expected to contribute N449.76 billion, up sharply from N71.37 billion in the preceding week. Other projected inflows included N39.65 billion in Federal Government of Nigeria bond coupons, N5.87 billion from corporate bond coupons and N8.47 billion from commercial paper maturities.
The latest development continues a liquidity pattern that has characterised the Nigerian money market in 2026.
In August, the CBN withdrew N4.72 trillion through four OMO auctions conducted over two days, even as N4.3 trillion flowed back into the system through primary-market repayments.
Earlier in February, the apex bank also sterilised more than N3.57 trillion over three days, while banks continued to place substantial amounts of surplus cash with the SDF.
With liquidity rising again in September, attention is now shifting to the CBN’s next Treasury Bills and OMO auction cycles and how the apex bank will balance liquidity management with its broader monetary-policy objectives.
Nairametrics
Discover more from The Source
Subscribe to get the latest posts sent to your email.
