Nigeria’s money market is expected to receive approximately N2.499 trillion in inflows during the week beginning October 12, 2026, with maturing Open Market Operations (OMO) bills accounting for nearly all the projected funds, following a 23.68% decline in banking system liquidity.
This is according to the Financial Markets Dealers Association (FMDA) weekly report dated October 12, 2026, which reviewed market developments through October 9 and outlined expected inflows for the coming week.
The projected inflows are 13.1% below the N2.877 trillion estimated for the preceding week, while banking system liquidity declined to N3.71 trillion from approximately N4.86 trillion.
OMO maturities are expected to provide N2.409 trillion during the week, representing approximately 96.4% of the projected N2.499 trillion in total money-market inflows. This is higher than the N2.168 trillion in OMO maturities recorded in the preceding week.
The N2.499 trillion projection represents potential gross liquidity injections from scheduled maturities and payments, rather than a forecast of the amount that will ultimately remain in the banking system.
Banking system liquidity declined 23.68% to N3.71 trillion in the week ended October 9, from approximately N4.86 trillion in the preceding week, representing a reduction of about N1.15 trillion.
The average Treasury bill yield increased 30 basis points to 18.16%, while the average Federal Government bond yield rose approximately 25 basis points to 16.06%.
The outlook for the week beginning October 12 will depend largely on how the CBN manages the N2.409 trillion in expected OMO maturities. Fresh OMO auctions could absorb part of the funds, limiting their impact on banking system liquidity and short-term interest rates.
However, if a larger proportion of the inflows remains within the banking system, liquidity conditions could improve and short-term yields may ease.
The projected N2.499 trillion inflow therefore provides potential liquidity support, but the actual effect will depend on subsequent monetary operations and other market flows.
