CBN faces N10.90 trillion liquidity surge in June on N7.77 trillion OMO maturities
The Central Bank of Nigeria (CBN) is set to confront renewed liquidity management pressures in June 2026 as Nigeria’s financial system is projected to receive N10.90 trillion in inflows, largely driven by maturing Open Market Operations (OMO) bills.
The Central Bank of Nigeria (CBN) is set to confront renewed liquidity management pressures in June 2026 as Nigeria’s financial system is projected to receive N10.90 trillion in inflows, largely driven by maturing Open Market Operations (OMO) bills.
This is according to the Financial Markets Dealers Association (FMDA) Monthly Market Report published on June 1, which showed that June’s projected inflows represent a 3.51% increase from the N10.53 trillion recorded in May.
The development comes despite the apex bank’s aggressive liquidity tightening efforts in May, during which it withdrew an estimated N12.06 trillion from the financial system.
However, average system liquidity still expanded by 7.76% to N5.22 trillion, highlighting the challenge of containing excess liquidity amid large recurring inflows.
The FMDA report indicates that OMO maturities will remain the dominant source of liquidity inflows into the financial system during June. The N7.77 trillion expected from maturing OMO bills accounts for approximately 71% of total projected inflows for the month.
The data underscores the cyclical nature of liquidity management in Nigeria, where OMO instruments used to absorb liquidity eventually mature and return substantial cash to the banking system, necessitating fresh sterilisation measures by the CBN.
The May liquidity data provides important context for understanding the scale of the challenge facing monetary authorities in June.
In addition, the projected N1.80 trillion FAAC disbursement will provide another significant source of liquidity injection into the economy, further complicating efforts to manage excess system funds.
Nigeria’s broader fiscal and monetary environment continues to contribute to elevated liquidity conditions within the financial system.
The FMDA advised investors to position portfolios to benefit from elevated liquidity conditions and significant inflows expected in June, while maintaining prudent foreign exchange risk management strategies amid lingering currency market uncertainties.
