Nigeria's Banking Sector to See N2.45tn Liquidity Inflow

The Nigerian banking system is expected to experience a liquidity inflow of N2.448 trillion this week, driven mainly by maturing Open Market Operations (OMO) bills amounting to N2.298 trillion and Treasury bills maturities contributing N148.565 billion. This projection comes from the Weekly Market Report by the Financial Markets Dealers Association.

The Central Bank of Nigeria (CBN) has been actively managing excess naira liquidity, having raised N5.667 trillion through OMO auctions on November 3 and 6. Despite this, system liquidity rose by 15.36 percent week-on-week to N8.505 trillion.

The Debt Management Office (DMO) is set to return to the primary T-bill market on November 11 with an N800 billion offer, which includes N100 billion for 91-day, N100 billion for 182-day, and N600 billion for 364-day T-bills. This auction aims to absorb excess liquidity alongside further OMO interventions.