Nigeria's Liquidity Rises to N4.66tn Amid OMO Maturities

Nigeria's financial system liquidity surged by 28.98% week-on-week to N4.66 trillion, up from N3.61 trillion, driven by maturities of Open Market Operations (OMO) instruments and Treasury bills, as reported by the Financial Markets Dealers Association (FMDA). Despite an estimated N3.75 trillion sterilization through OMO and Nigerian Treasury Bills (NTB) auctions, substantial funds flowed into the banking system.

Approximately N3.02 trillion is expected to enter the financial system this week, primarily from OMO maturities, which are projected to account for about 97% of the inflows, with N2.94 trillion due to mature. The Central Bank of Nigeria (CBN) is set to conduct a N500 billion Treasury bills auction, the lowest issuance size recorded in Q3 2026, consisting of N100 billion of 91-day bills, N100 billion of 182-day bills, and N300 billion of 364-day bills.

The previous NTB auction indicated a preference for longer-dated instruments, with the 364-day bill achieving a 6.48x bid-to-cover ratio.