Nigeria’s apex bank could face significant upsurge in system liquidity up to about N8.57 trillion this week beginning Monday, September 28, following a potential N2.59 trillion injection from maturing Open Market Operations (OMO) bills and bond coupons.
Nairametrics’ analysis of Central Bank of Nigeria (CBN’s) financial data shows that net system liquidity had already strengthened to N5.98 trillion in the week ended Friday, September 25, from N2.86 trillion in the prior week.
The projected increase, driven by N2.43 trillion in OMO maturities and N164 billion in bond coupons, could set the stage for another liquidity mop-up operation by the CBN.
Banks placed more than N7 trillion at the Standing Deposit Facility (SDF) during the past week, underscoring the substantial surplus liquidity available within the financial system.
The liquidity build-up is consistent with a pattern seen throughout 2026, as banks have routinely parked substantial cash with the CBN through the SDF even after large liquidity withdrawals.
The secondary Treasury bills market turned decisively bullish following the MPC’s easing action, with the strongest repricing recorded at the longer end of the curve.
The heavy oversubscription despite falling yields echoes the broader Q3 2026 NTB Issuance Programme, under which the CBN allotted N8.14 trillion across the quarter’s auctions, 40.34% above the N5.8 trillion originally targeted.
The MPC’s decision to cut the Monetary Policy Rate by 350 basis points to 23% at its September 22 meeting marked the sharpest single-meeting reduction of the current easing cycle.
The coming sessions will therefore provide an early test of how aggressively the CBN uses sterilisation to manage liquidity and the transmission of its newly recalibrated, more accommodative monetary policy stance.
