CBN drains N7.30 trillion, injects N5.73 trillion in May-2026 as OMO sales hit N5.74 trillion
The Central Bank of Nigeria (CBN) withdrew N7.303 trillion from the financial system in May 2026 while injecting N5.734 trillion through maturing instruments, resulting in a net liquidity withdrawal of N1.569 trillion during the month.
The Central Bank of Nigeria (CBN) withdrew N7.303 trillion from the financial system in May 2026 while injecting N5.734 trillion through maturing instruments, resulting in a net liquidity withdrawal of N1.569 trillion during the month.
The figures are based on a Nairametrics analysis of CBN daily financial data covering fourteen trading days between May 7 and May 29, 2026.
The data highlights the apex bank’s continued reliance on aggressive liquidity sterilisation measures as it seeks to manage excess naira liquidity and maintain its monetary tightening stance.
The month’s most significant liquidity operation occurred on May 21 when the CBN conducted a N3.692 trillion Open Market Operations (OMO) auction and accepted all subscriptions received across two bill tenors.
The transaction alone accounted for more than half of total OMO sales recorded during the month. Overall, liquidity withdrawals exceeded injections by a significant margin, underscoring the central bank’s determination to absorb excess funds from the banking system.
CBN liquidity operations in May were dominated by OMO activities, which accounted for the bulk of funds withdrawn from the banking system. Data also showed that primary market operations complemented the liquidity management strategy, although on a smaller scale.
At the end of the month, OMO operations produced a net withdrawal of N1.525 trillion, while primary market activities resulted in a net withdrawal of approximately N44 billion. Combined, total liquidity withdrawn stood at N7.303 trillion compared with N5.734 trillion injected into the system, leaving a net drainage of N1.569 trillion.
The pattern of liquidity management during May unfolded in three distinct phases, revealing how the CBN balanced liquidity injections from maturing instruments with aggressive mop-up operations.
The movements in the Standing Deposit Facility and banking system balances reflected the impact of these interventions throughout the month.
The combined effect of these operations was evident in the SDF balance, which dropped to a monthly low of N2.70 trillion on May 22 before rebounding to N5.89 trillion by the end of the month as banks redeployed returned funds into overnight deposits with the CBN.
The May 2026 liquidity data reflects a broader trend of aggressive monetary tightening that has characterised the CBN’s market operations since the beginning of the year. OMO bills have remained the central bank’s preferred instrument for managing excess liquidity and controlling money supply growth.
These developments suggest that the CBN may face renewed pressure to conduct further liquidity management operations in June, with its response to incoming maturities likely to determine whether the current tightening cycle continues or system liquidity expands further.
