Liquidity expected to flow into Nigeria’s financial system this week is projected at N3.02 trillion, with maturing Open Market Operations (OMO) bills accounting for the overwhelming majority of the inflows.
According to the latest liquidity outlook from the Financial Markets Dealers Association (FMDA), OMO maturities are expected to reach N2.94 trillion this week, up 30.67 per cent from N2.25 trillion recorded in the previous week.
The N690 billion increase makes OMO maturities the dominant source of liquidity entering the financial system this week, accounting for about 97.5 per cent of projected inflows.
Overall estimated inflows of N3.02 trillion are only marginally higher than the N3.01 trillion projected for the previous week, reflecting a significant shift in the composition of liquidity rather than a major increase in the total amount.
Treasury bill maturities are projected at N71.37 billion, representing a sharp 90.29 per cent decline from N734.81 billion in the previous week.
Commercial Paper maturities are also expected to fall to N3.42 billion from N29.90 billion, while corporate bond coupons are projected at N236.25 million.
No inflows are expected this week from Federal Government bond coupons, FGN bond maturities, corporate bond maturities or Federation Account Allocation Committee (FAAC) disbursements.
The latest projection comes after system liquidity climbed 28.98 per cent last week to N4.66 trillion from N3.61 trillion.
The increase followed significant inflows from OMO and Treasury bill maturities, although the Central Bank of Nigeria subsequently moved to absorb excess liquidity through aggressive open-market operations.
The CBN had sterilised N4.72 trillion through OMO bill auctions in the final days of August, while a N2.49 trillion Primary Market Repayment executed on September 1 also contributed to the liquidity dynamics in the financial system.
Following the repayment, the CBN conducted bond and Treasury bill sales totalling N3.745 trillion on September 1 and 3, underscoring the apex bank’s continued effort to manage excess liquidity.
The current week’s figures therefore present a mixed picture: substantial liquidity is due to return through maturing OMO instruments, but the CBN’s recent sterilisation activities suggest that much of the additional cash could again be absorbed through monetary operations.
The development will be closely watched by money-market participants because changes in system liquidity can influence short-term interest rates, demand for government securities and broader financial-market conditions.
