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Banking system liquidity stayed substantial in the week ended November 6, 2026, with Standing Deposit Facility (SDF) balances rising to N8.311 trillion even as the Central Bank of Nigeria (CBN) raised N724.32 billion at its OMO auction on Friday, November 6.
This is according to the financial data of the apex bank as of Friday, November 6, which was analysed by Nairametrics.
The CBN allotted N724.32 billion at the Open Market Operations (OMO) auction on Friday, accepting 38.37% of N1.887 trillion in bids.
Banks nonetheless placed N8.311 trillion at the SDF, up N347.44 billion (4.36%) from N7.964 trillion on Thursday, November 5 and N1.345 trillion (19.30%) from N6.966 trillion on Wednesday, November 4.
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The single OMO auction had a limited effect on overall banking system liquidity, setting up an atmosphere for fresh OMO auctions by next week beginning Monday, November 9.
SDF placements keep climbing:
SDF balances have risen steadily through the week. They were also higher than the N7.72 trillion elevated liquidity that Nairametrics reported on November 3. That implies an increase of about N591 billion just within three days as follows:
- November 4: N6.966 trillion
- November 5: N7.964 trillion
- November 6: N8.311 trillion
Opening balances fall sharply:
Banks’ opening balances weakened considerably over the same period, a sign that cash is being moved to the SDF rather than held in operating accounts:
- November 4: N612.06 billion
- November 5: N258.83 billion (down N353.23 billion, or 57.71%)
- November 6: N194.10 billion (down a further N64.73 billion, or 25.01%)
Opening balances fell by N417.96 billion (68.29%) between November 4 and November 6. The CBN’s data also show that the N572.55 billion in primary-market repayments on November 5 exceeded the N509.40 billion in new Treasury Bills auction on Wednesday, November 4, a net injection of N63.15 billion.
OMO auction: strong demand, selective allotment:
The CBN offered N1 trillion, split equally between the 179-day and 270-day bills.
Subscriptions of N1.887 trillion represented 188.72% of the offer (1.89x bid-to-cover).
It allotted N724.32 billion (72.43% of the offer) and left N1.163 trillion unallocated.
No new OMO repayments were recorded, so the auction was a fresh mop-up rather than a refinancing of maturing bills.
- 179-day bill (matures May 4, 2027): N741.62 billion in bids, N405.62 billion allotted (54.70%), stop rate 17.25%, true yield 18.8441%
- 270-day bill (matures August 3, 2027): N1.146 trillion in bids, N318.70 billion allotted (27.82%), stop rate 16.54%, true yield 18.8458%
- The 270-day bill drew stronger demand but had the larger unallocated balance, N826.90 billion, suggesting the CBN was more selective on the longer tenor.
The CBN data show that the two Bills’ true yields were virtually identical at about 18.84%, though the 179-day bill cleared at a stop rate 71 basis points higher.
The November 6 allotment was much smaller than the CBN’s earlier operations this month. Nairametrics reported that the CBN allotted about N2.95 trillion at its November 3 OMO auction, about 85.3% of the N3.46 trillion raised across the OMO and November 4 Treasury Bills auctions.
The N724.32 billion raised on November 6 is roughly a quarter of the November 3 allotment.
More liquidity ahead:
The outlook points to further liquidity. The Financial Markets Dealers Association (FMDA) projects about N13.79 trillion in inflows in November, driven largely by OMO maturities, FAAC allocations and Treasury Bills repayments.
- Banking-system liquidity rose 56.75% to N7.373 trillion in October from N4.703 trillion in September, according to the same report.
- Another Monetary Policy Committee meeting is scheduled for this November.
Investors will be watching whether the CBN keeps allotting well below subscription levels or steps up its mop-up to match the expected inflows.
