OMO, NTB maturities to inject nearly N3 trillion into banking system this week

Nigeria’s money market is set for a major liquidity boost this week as approximately N2.09 trillion in Open Market Operations (OMO) maturities and N464.60 billion in maturing Nigerian Treasury Bills (NTBs) flow back into the banking system, creating fresh refinancing and liquidity management challenges for the Central Bank of Nigeria (CBN).

The liquidity injection comes as the apex bank prepares to refinance a total of N891.51 billion in Treasury bills maturing across four settlement dates in June 2026, according to the CBN’s second-quarter NTB issuance programme.

Market analysts expect the combination of large OMO maturities and Treasury bill repayments to keep banking system liquidity elevated in the near term, despite recent efforts by the CBN to absorb excess funds through Treasury bill and OMO auctions.

The development follows an active week in the fixed-income market, during which the CBN raised N1.457 trillion at its June 3 Treasury bills auction and allotted N3.04 trillion at an OMO auction, as authorities sought to manage excess liquidity and maintain attractive yields for investors.

What the data is saying

The June refinancing calendar shows that the heaviest Treasury bill maturity falls on June 4, when N464.60 billion worth of securities matured across all three tenors.

A breakdown of June NTB maturities shows:

June 4, 2026:

• 91-day bills: N64.27 billion
• 182-day bills: N30.36 billion
• 364-day bills: N369.97 billion
• Total maturities for June 4: N464.60 billion

June 11, 2026: 

• 91-day bills: N130.74 billion
• 182-day bills: N13.64 billion
• Total maturities for June 11: N144.38 billion

June 18, 2026: 

• 91-day bills: N101.29 billion
• 364-day bills: N83.50 billion
• Total maturities for June 18: N184.79 billion

June 25, 2026: 

• 91-day bills: N97.75 billion
• Total: N97.75 billion

Total June maturities: N891.51 billion 

The 364-day tenor accounts for the largest share of maturities at N453.47 billion, representing about 50.8% of the total amount due this month. The 91-day tenor follows with N394.05 billion, while the 182-day segment contributes N43.99 billion.

In addition to the Treasury bill repayments, Weekly Economic and Market, an overview of markets in the week ended 05 June 2026, published by Cordros Securities indicates that approximately N2.09 trillion in OMO bills will mature this week, significantly strengthening system liquidity if not offset by fresh liquidity mop-up operations from the apex bank.

More insights:

The expected inflows arrive after a week in which liquidity conditions remained robust despite sizeable primary market auction outflows.

• According to market data, average system liquidity closed last week at a net long position of about N4.66 trillion, slightly higher than the N4.61 trillion recorded in the preceding week.
• Strong liquidity was supported by substantial Standing Deposit Facility (SDF) placements averaging N4.87 trillion, highlighting the excess cash position of banks and other financial institutions.
• The Treasury bills market also reflected strong investor demand. At the June 3 NTB auction, subscriptions reached N2.16 trillion against an offer size of N1 trillion, prompting the Debt Management Office (DMO) to allot N1.46 trillion.
• Similarly, demand at the latest OMO auction reached N3.3 trillion against a N600 billion offer, with the CBN eventually allotting N3.04 trillion across the three offered tenors.

Despite the large auction allotments, analysts note that the N2.09 trillion OMO maturities expected this week could more than offset recent liquidity withdrawals unless additional mop-up operations are conducted.

What you should know: 

The June Treasury bill maturities form part of a broader refinancing calendar that will see the CBN refinance N891.51 billion in maturing NTBs before the end of the month.

• The maturities are occurring against a backdrop of sustained tight monetary policy, with the Monetary Policy Rate (MPR) remaining at 26.50% and OMO rates still above 20%.
• The CBN and DMO may choose to over-allot or under-allot future auctions depending on prevailing liquidity conditions and monetary policy objectives.
• While strong liquidity conditions are supportive of fixed-income demand, they also increase the need for active liquidity management by the apex bank to prevent excess cash from undermining monetary policy transmission.

Analysts expect Treasury bill demand to remain firm in the coming weeks, particularly as institutional investors seek to reinvest proceeds from both NTB and OMO maturities into high-yield government securities.