CBN Attracts N14.4 Trillion in May Liquidity Auctions

In May, a total of N14.4 trillion was staked on the Central Bank of Nigeria's (CBN) liquidity mopping instruments, as banks deposited N86.3 trillion in the apex bank. The CBN's Economic Report for May indicated that financial institutions and institutional investors subscribed N14.4 trillion for the Open Market Operations (OMO) auctions, where the CBN offered N3.6 trillion and allotted N12.54 trillion.

This represented an increase from April, where N10.6 trillion chased N3 trillion OMO bills, with N9.51 trillion allotted. The CBN noted that the higher-than-expected subscription was due to liquidity surplus and attractive returns, with stop rates ranging from 19.97 to 21.90 percent.

The Standing Lending Facility (SLF) utilization decreased to N0.02 trillion from N0.05 trillion in April, indicating limited demand for overnight liquidity support. Meanwhile, placements at the Standing Deposit Facility (SDF) window fell to N86.30 trillion from N91.55 trillion in April, despite a marginal increase in average daily placements.

Average net liquidity in the banking system rose to N5.53 trillion, driven by inflows from maturing CBN bills, bond coupons, and fiscal injections.