FMDA projects N13.79 trillion inflows in November as CBN eases OMO mop-up

Nigeria’s financial system is projected to receive approximately N13.79 trillion in liquidity inflows in November 2026, driven largely by Open Market Operations (OMO) maturities and government disbursements.

According to the Financial Markets Dealers Association’s (FMDA) October 2026 market report, the projection represents a 2.16% increase from the N13.50 trillion recorded in October. The Association had projected N13.25 trillion liquidity inflows for October, 2026.

The November liquidity outlook follows a moderation in the Central Bank of Nigeria’s (CBN) liquidity mop-up operations, which coincided with a 56.75% increase in banking-system liquidity to N7.373 trillion in October from N4.703 trillion in September.

The FMDA projects total liquidity inflows of N13.787 trillion in November, compared with N13.495 trillion in October, representing an increase of approximately N292 billion.

The report also identifies a $105.94 million Eurobond coupon payment due in November, which is excluded from the naira liquidity projection.

The November projection follows a slowdown in the CBN’s liquidity absorption operations during October, when banking-system liquidity increased by 56.75% to N7.373 trillion.

According to the FMDA, the CBN allotted N6.182 trillion in fresh OMO securities against N9.051 trillion in maturities, leaving a net repayment difference of approximately N2.87 trillion before other liquidity movements.

For banks and fixed-income investors, the anticipated inflows could sustain demand for short-term securities if fresh OMO and Treasury Bills allotments remain below maturing obligations.

However, the impact on yields will depend on the volume of new securities issued and the rates investors are willing to accept.

Despite the increase in banking-system liquidity, interbank funding rates remained relatively stable during October, the report indicated.

The eventual impact will depend on fresh securities issuance, government cash movements and the extent to which maturing obligations are reinvested.

A return to aggressive OMO issuance could absorb a significant portion of the expected inflows, while continued selective allotments could sustain excess liquidity and place further downward pressure on short-term yields.

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