Nigeria’s financial system is expected to receive an estimated N2.04 trillion in liquidity inflows this week, largely driven by maturing Open Market Operations (OMO) bills, even as the Central Bank of Nigeria (CBN) intensified liquidity sterilisation efforts in the previous week.
The projection was disclosed in the latest Financial Markets Dealers Association (FMDA) Weekly Market Snapshot published on Monday, May 25, 2026.
The report also showed that average system liquidity declined by 17.68% week-on-week to N4.40 trillion after the CBN mopped up approximately N4.55 trillion through liquidity management operations.
The expected inflows, while lower than the N3.03 trillion recorded last week, are anticipated to provide fresh liquidity to the banking system and influence money market conditions in the days ahead.
What the data is saying
The FMDA report indicates that OMO maturities will account for the overwhelming majority of inflows expected this week, underscoring their continued importance as the primary liquidity driver in the financial system.
- OMO maturities were projected at N1.97 trillion compared with N2.25 trillion last week, representing about 97% of the total expected inflows of N2.04 trillion.
- FGN bond coupon payments are estimated at N47.84 billion compared with N161.28 billion in previous week, providing additional liquidity to fixed-income investors.
- Commercial paper maturities are expected to contribute N23.10 billion during the week compared with N31.90 billion in the previous week.
- Compared with the previous week, total expected inflows declined from N3.03 trillion to N2.04 trillion, largely due to CBN mop-up operations.
Unlike the previous week when Treasury Bills maturities drew N583.29 billion, there are no Treasury bills maturities, FGN bond maturities, corporate bond coupon payments, or FAAC disbursements expected within this week.
More insights:
The sharp decline in average liquidity reflects the CBN’s continued use of aggressive liquidity sterilisation measures aimed at managing excess cash in the banking system and maintaining stability in the fixed-income market.
- In a single aggressive mop-up auction last week, CBN drained N3.69 trillion from the financial system using two bills of Open Market Operation (OMO).
- With OMO maturities accounting for nearly all projected inflows this week, market participants are expected to closely monitor the extent to which the CBN reabsorbs liquidity through additional OMO auctions or other liquidity management operations.
- The relatively lower inflow projection for the week may also support elevated short-term interest rates in the money market, especially if liquidity conditions tighten further.
- Analysts note that the absence of Treasury bills maturities and FAAC disbursements this week reduces alternative liquidity sources, leaving the market more dependent on OMO-related inflows.
At the same time, commercial paper maturities and bond coupon payments could support selective reinvestment activity in the fixed-income market.
What you should know:
The latest liquidity projection follows a period of elevated system inflows largely driven by OMO maturities and Treasury instruments.
- In its May 2026 Monthly Market Report, FMDA projected total inflows of N10.53 trillion for the month, compared to N9.08 trillion recorded in April.
- OMO maturities are expected to contribute N7.17 trillion — the largest share of projected inflows.
- Treasury bills maturities were estimated at N1.05 trillion, while FAAC inflows were projected at N1.8 trillion.
- The April liquidity environment also reflected strong inflows supported by OMO maturities of N5.88 trillion.
- Treasury bills maturities of N722.72 billion and FAAC disbursements of N2.04 trillion, underscoring the continued dominance of sovereign instruments in shaping market liquidity conditions.
Market analysts say sustained high liquidity levels, combined with active CBN sterilisation measures, could continue to influence money market rates, yield movements and portfolio allocation decisions across Nigeria’s fixed-income market.
