FMDA Forecasts Nigeria's October Liquidity Inflows Drop

The Financial Markets Dealers Association (FMDA) has projected that total liquidity inflows into Nigeria’s financial system will decline by 14.82% to N13.250 trillion in October 2026, down from N15.556 trillion in September. This decline is attributed mainly to a 21.97% drop in Open Market Operations (OMO) maturities, which are expected to fall to N9.051 trillion from N11.600 trillion in September.

OMO maturities will still account for approximately 68.3% of October's projected liquidity inflows. The total liquidity inflows are expected to be bolstered by OMO maturities, Treasury bill maturities, and estimated Federation Account Allocation Committee (FAAC) distributions, contributing about N12.774 trillion, or 96.4% of the total.

The report indicates that the reduction in inflows reflects a smaller volume of OMO securities maturing in October. The previous month saw heavy liquidity management by the Central Bank of Nigeria (CBN), with OMO issuance increasing by 45.61%.

System liquidity rose by 1.14% to N4.703 trillion in September, but the FMDA cautioned that various factors could lead to volatility in liquidity conditions.