N3.56tn Liquidity Inflow Expected in Nigeria This Week

The Financial Markets Dealers Association (FMDA) has projected that N3.56 trillion will flow into Nigeria’s financial system this week, an increase from the N3.02 trillion expected the previous week, representing an 18% week-on-week rise. The FMDA's Weekly Market Snapshot indicates that Open Market Operations (OMO) maturities will contribute approximately 86% of the expected inflows, amounting to N3.06 trillion, compared to N2.94 trillion from the prior week.

Additionally, Treasury Bills maturities are anticipated to reach N449.76 billion, significantly higher than the N71.37 billion recorded last week. Other inflows include N39.65 billion from FGN bond coupons, N5.87 billion from corporate bond coupons, and N8.47 billion from commercial paper maturities.

However, the expected inflow occurs amid tighter liquidity conditions, with system liquidity dropping 47.12% week-on-week to N2.46 trillion from N4.67 trillion. The FMDA attributes this decline to the Central Bank of Nigeria’s (CBN) liquidity management operations, which sterilized approximately N5.46 trillion via OMO and NTB auctions.