The Nigerian banking system could see liquidity rise to about N8.57 trillion this week as maturing Open Market Operations (OMO) instruments and bond coupon payments release additional funds into the financial system.
Net system liquidity had already climbed to N5.98 trillion by September 25, from N2.86 trillion a week earlier, according to an analysis of the Central Bank of Nigeria (CBN) financial data.
About N2.43 trillion in OMO maturities is scheduled for settlement, while bond coupon payments could inject a further N164 billion. If the funds remain within the system, the combined inflow could push liquidity to approximately N8.57 trillion.
Banks had already placed more than N7 trillion with the CBN through its Standing Deposit Facility, highlighting the level of surplus cash available to lenders.
The liquidity increase comes after the CBN decided to cut the MPR from 26.5% to 23%. Following the rate cut, the overnight rate fell to 20.77%, while the funding rate declined to 20.40%. The CBN may therefore face renewed pressure to sterilise excess liquidity through OMO sales and other monetary operations.
