CBN Reports N5.53 Trillion Cash Liquidity Surge in May
In May 2026, Nigeria's banking system experienced a notable increase in cash liquidity, reaching N5.53 trillion, which represents a 17.16% rise from the N4.72 trillion recorded in April 2026. This data was reported in the Central Bank of Nigeria's (CBN) Monthly Economic Report for May 2026.
The surge in liquidity was primarily attributed to inflows from matured bills, bond coupon payments, and allocations to various government tiers through the Federation Account Allocation Committee (FAAC). Additionally, the liquidity position was influenced by the maintenance of the Cash Reserve Ratio (CRR) and foreign exchange-related activities, which contributed to the stability of short-term interest rates.
In response to the excess liquidity, the CBN intensified its Open Market Operations (OMO), offering N3.6 trillion in CBN bills. Demand for these bills was exceptionally high, with subscriptions totaling N14.4 trillion, leading to an allotment of N12.54 trillion at stop rates between 19.97% and 21.90%.
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