Nigeria's banking system is set to absorb up to N8.57 trillion in liquidity during the week beginning Monday, September 28, 2026, as maturing Open Market Operations bills and bond coupon payments reach the market. Nairametrics analysis of Central Bank of Nigeria data shows the projected build-up is driven by N2.43 trillion in OMO maturities and N164 billion in bond coupons.
Net system liquidity had already strengthened to N5.98 trillion in the week ended Friday, September 25, from N2.86 trillion in the prior week. Banks placed more than N7 trillion at the Standing Deposit Facility over the past week, underscoring the surplus cash already circulating in the financial system.
The banking system received roughly N2.3 trillion from OMO repayments on Tuesday, September 22. The additional N2.43 trillion in OMO maturities scheduled for settlement this week, combined with N164 billion in bond coupon payments, could lift net liquidity to approximately N8.57 trillion if the funds are fully retained.
Money-market rates responded sharply to the abundant liquidity and the Monetary Policy Committee's decision at its September 22 meeting to cut the benchmark rate by 350 basis points to 23%. The overnight rate declined 147 basis points week-on-week to 20.77%, while the funding rate fell 160 basis points to 20.40%, with reductions also recorded across the NIBOR curve.
The secondary Treasury bills market turned bullish following the easing decision, with the strongest repricing at the longer end of the curve. Yields contracted by 29, 114 and 123 basis points across selected maturities, pulling the average Nigerian Treasury Bills yield down 90 basis points to 17.89%.
At the Nigerian Treasury Bills auction, the Debt Management Office offered N500 billion across the 91-day, 182-day and 364-day maturities, attracting N4.2 trillion in subscriptions and allotting N497 billion. Stop rates settled at 15.50% for the 91-day bill, 15.80% for the 182-day instrument and 15.89% for the 364-day bill.
At the CBN's OMO auction on Thursday, September 24, N1 trillion was offered across the 68-day, 152-day and 180-day maturities, drawing N6.1 trillion in subscriptions before N2.3 trillion was allotted. No allotment was recorded for the 68-day instrument, while the 152-day and 180-day bills cleared at 17.29% and 16.99% respectively.
