FMDA forecasts N13.79 trillion liquidity inflows for November

The Financial Markets Dealers Association (FMDA) projects that Nigeria's financial system will experience approximately N13.79 trillion in liquidity inflows in November 2026, primarily due to Open Market Operations (OMO) maturities and government disbursements. This projection marks a 2.16% increase from the N13.50 trillion recorded in October.

The FMDA had previously estimated N13.25 trillion for October. The increase in liquidity follows a reduction in the Central Bank of Nigeria's (CBN) liquidity mop-up operations, which coincided with a 56.75% rise in banking-system liquidity to N7.373 trillion in October from N4.703 trillion in September.

The CBN allotted N6.182 trillion in new OMO securities against N9.051 trillion in maturities, resulting in a net repayment difference of approximately N2.87 trillion. The anticipated inflows could sustain demand for short-term securities, depending on new securities issuance and investor rates.

Interbank funding rates remained stable despite increased liquidity, and the overall impact will depend on government cash movements and reinvestment of maturing obligations.