Nigeria's July Liquidity Inflows Projected at N12.39tn

The Financial Market Dealers Association (FMDA) projects that Nigeria's financial system will receive an estimated N12.39 trillion in liquidity inflows for July 2026, marking a 7% increase from the N11.40 trillion recorded in June. Open Market Operations (OMO) bill maturities are expected to dominate this inflow, accounting for approximately 73% of the total.

The Central Bank of Nigeria's (CBN) liquidity sterilization strategy will play a crucial role in determining the liquidity conditions within the banking system. The report indicates that N9.01 trillion of the projected inflow will come from OMO bill maturities, compared to N7.77 trillion in June.

Additionally, treasury bill maturities are expected to contribute N647.79 billion, while federal government bond coupon payments will inject N446.82 billion into the financial system. Other anticipated inflows include N72.05 billion from corporate bond coupons and N30 billion from corporate bond maturities.

Despite these inflows, the average system liquidity fell by 12.26% to N4.58 trillion in June due to the CBN's withdrawal of an estimated N16.9 trillion through treasury bill and OMO auctions.