FMDA: July Liquidity Inflows to Hit N12.39tn as OMO Maturities Dominate

Nigeria's financial system is poised to receive an estimated N12.39 trillion in liquidity inflows during July. This figure represents an 8.7% increase compared to the N11.40 trillion recorded in June. The ultimate effect on market liquidity, however, will largely depend on the Central Bank of Nigeria’s (CBN) liquidity sterilization strategy.

The projection, detailed in the Financial Markets Dealers Association (FMDA) Monthly Market Report for June 2026, indicates that Open Market Operations (OMO) bill maturities will account for approximately 73% of the anticipated inflows. This substantial portion makes the CBN’s response a key determinant of liquidity conditions within the banking system.

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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.

According to the report, N9.01 trillion of the projected inflows will stem from OMO bill maturities, a rise from the N7.77 trillion that matured in June. Treasury bill maturities are expected to contribute N647.79 billion, while federal government bond coupon payments will inject N446.82 billion into the financial system. Other anticipated 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 from Federation Account Allocation Committee (FAAC) distributions to the three tiers of government.

Despite these substantial inflows, the FMDA noted that average system liquidity fell by 12.26% to N4.58 trillion in June. This decline occurred as the CBN intensified its liquidity management operations, withdrawing an estimated N16.9 trillion through Treasury bill and OMO auctions.

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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.