FMDA forecasts N2.499 trillion inflows for Nigeria's money market

The Financial Markets Dealers Association (FMDA) reported that Nigeria's money market is expected to receive approximately N2.499 trillion in inflows during the week beginning October 12, 2026. This projection follows a 23.68% decline in banking system liquidity, which fell to N3.71 trillion from about N4.86 trillion.

The inflows are primarily attributed to maturing Open Market Operations (OMO) bills, which are expected to contribute N2.409 trillion, accounting for approximately 96.4% of the total projected inflows. This amount is higher than the N2.168 trillion in OMO maturities recorded in the previous week.

The projected inflow of N2.499 trillion represents potential gross liquidity injections rather than a forecast of the amount that will remain in the banking system. The average Treasury bill yield increased by 30 basis points to 18.16%, while the average Federal Government bond yield rose by approximately 25 basis points to 16.06%.

The Central Bank of Nigeria's management of the expected OMO maturities will significantly influence liquidity conditions and short-term interest rates.