FMDA Forecasts Nigeria's Liquidity Inflows to Drop 31%

The Financial Markets Dealers Association (FMDA) has projected a significant decline in Nigeria's financial-system liquidity inflows, estimating a drop of 30.62% to N2.47 trillion this week, down from N3.56 trillion the previous week. This decline coincides with the Central Bank of Nigeria's (CBN) Monetary Policy Committee (MPC) meeting scheduled for September 21-22, 2026, where analysts anticipate the CBN will maintain its benchmark rate at 26.5%.

The FMDA's report indicates that OMO maturities will constitute approximately 91.8% of the projected inflow, totaling N2.27 trillion, which is a decrease of 25.8% from N3.06 trillion. Other sources, such as corporate bond coupons and commercial paper maturities, are also expected to decline significantly.

Despite the projected decrease, system liquidity improved by 15.97% over the past week, rising to N2.86 trillion. The MPC's upcoming decision is crucial as it may signal the CBN's stance on easing policy amid ongoing economic challenges.