Nume Ekeghe
The nation’s financial system is set to receive an estimated N12.39 trillion in liquidity inflows in July, an 8.7 per cent increase over the N11.40 trillion recorded in June, with the ultimate impact on market liquidity expected to hinge on the Central Bank of Nigeria’s (CBN) liquidity sterilisation strategy.
The projection, contained in the Financial Markets Dealers Association (FMDA) Monthly Market Report for June 2026, showed that Open Market Operations (OMO) bill maturities will account for about 73 per cent of the anticipated inflows, making the CBN’s response a key determinant of liquidity conditions in the banking system.
According to the report, N9.01 trillion of the projected inflows will come from OMO bill maturities, compared with N7.77 trillion that matured in June.
Treasury bill maturities, it said, are expected to contribute N647.79 billion, while federal government bond coupon payments will inject N446.82 billion into the financial system.
Other expected inflows include N72.05 billion from corporate bond coupons, N30 billion from corporate bond maturities, N185.50 billion from commercial paper maturities, and an estimated N2 trillion in Federation Account Allocation Committee (FAAC) distributions to the three tiers of government. Together, these are projected to lift total market inflows to N12.39 trillion in July.
Highlighting the outlook, the report stated: “Looking ahead, an estimated N12.39 trillion in inflows is projected for July, about 8.7 per cent higher than the N11.40 trillion recorded in June. OMO maturities account for approximately 73% of the expected inflows, although the net liquidity impact will depend on the CBN’s sterilisation strategy.”
The projected increase follows a month in which the apex bank intensified its liquidity management operations despite substantial inflows from maturing securities.
FMDA noted that average system liquidity fell by 12.26 per cent to N4.58 trillion in June as the CBN withdrew an estimated N16.9 trillion through Treasury bill and OMO auctions.
It said: “Average system liquidity declined by 12.26 per cent in June to N4.58 trillion, as the CBN intensified its liquidity sterilisation operations, withdrawing an estimated N16.9 trillion through Treasury bill and OMO auctions.”