CBN Projects N1.53tn Liquidity Inflows This Week

The Central Bank of Nigeria (CBN) is projected to receive approximately N1.53 trillion in liquidity inflows this week, driven mainly by maturities of fixed-income instruments. The Financial Market Dealers Association (FMDA) reports that this inflow is slightly higher than the N1.48 trillion expected in the previous week and will support liquidity levels across the banking system.

The breakdown of the anticipated inflow indicates that open market operations (OMO) maturities will constitute the largest share at N1.237 trillion, representing 81% of the total expected liquidity. Additionally, N139.06 billion from federal government bond coupon payments and N145.92 billion from corporate bond coupon payments are expected to inject further liquidity into the market.

Despite significant withdrawals by the apex bank to manage liquidity, the overnight fund rate remained stable at around 22%. The average system liquidity declined by 1.10% to N4.61 trillion during the review period, while the average yield on federal government bonds rose by 31 basis points to 16.71%.