Nigeria’s {financial} system is anticipated to obtain a liquidity enhance of about N8.61 trillion in February 2026, largely pushed by maturities from Open Market Operations (OMO), Treasury payments (T-bills), and coupon funds on authorities bonds.
The projection was contained in FMDA’s Month-to-month Market Report for February 2026, which famous that the inflows will play a crucial function in shaping cash market circumstances, mounted earnings yields, and international trade dynamics within the coming weeks.
The physique for treasury and {financial} market practitioners in Nigeria careworn that Nigeria’s working atmosphere stays “liquidity-managed relatively than liquidity-driven,” with CBN actions persevering with to play a central function in shaping near-term funding circumstances and international trade dynamics.
FMDA recognized OMO maturities because the dominant liquidity driver for the month, underscoring the Central Bank of Nigeria’s (CBN) continued reliance on the instrument for liquidity administration.
A breakdown of the anticipated inflows exhibits:
In accordance with FMDA, proceeds from these maturities are anticipated to movement again into the system, doubtlessly easing funding pressures after a interval of aggressive liquidity tightening.
The anticipated February inflows observe a pointy liquidity contraction in January, when the CBN intensified its tightening stance.
FMDA estimates that over N6.76 trillion was withdrawn from the system by means of OMO operations and Treasury invoice auctions through the month.
This aggressive mopping-up stored interbank charges elevated, with In a single day (OVN) and Open Purchase Again (OPR) charges trending larger, reflecting tight funding circumstances throughout the banking system.
Mounted earnings yields remained elevated in January in contrast with December 2025, as tight liquidity and agency price expectations dominated market sentiment.
FGN bond yields moved larger throughout most tenors, with the sharpest repricing seen within the 7–10 12 months section, pushed by provide pressures and cautious investor positioning relatively than a shift in financial coverage expectations.
Treasury invoice yields additionally repriced upward, notably on the 6–12 month tenors, following sustained public sale sizes and powerful cease charges.
General, the yield curve steepened modestly, suggesting traders proceed to demand larger compensation for longer-dated devices amid heavy issuance and liquidity reallocation.
Regardless of combined actions in international bond markets, FMDA famous that Nigeria’s long-dated yields have been largely influenced by home liquidity and provide dynamics, overshadowing exterior price alerts.
The institutional treasury sellers comprising industrial and service provider banks in addition to low cost homes cautioned that whereas the N8.61 trillion influx might ease funding pressures, its final affect on liquidity ranges and the naira will rely on a number of elements.
In January, a mixture of rising exterior reserves, firmer oil costs, OMO auctions, and a softer U.S. greenback helped present some buffer for the naira which strengthened at about N1,380 per Greenback.
Oil costs additionally strengthened through the month as geopolitical danger premiums elevated amid issues over potential U.S. motion in opposition to Iran.
Nairametrics had reported that in January 2026, the CBN aggressively sterilised over N15 trillion from the banking system, marking probably the most intensive liquidity mop-up operations in latest instances.
The liquidity drain was pushed primarily by large-scale:
These outflows have been solely partially offset by inflows from OMO maturities and Treasury repayments, leaving the banking system considerably cash-starved by month-end.
The tightening stance noticed interbank funding stress intensify, with cash market charges, together with the Open Purchase Again and In a single day charges, rising sharply as banks competed for scarce liquidity.
Whereas February’s massive inflows—dominated by OMO maturities—might supply momentary aid, analysts say shut consideration will stay on how aggressively the CBN strikes to re-absorb liquidity and what which means for rates of interest and FX stability.
