CBN Faces N10.90 Trillion Liquidity Surge in June as OMO Maturities Hit N7.77 Trillion Pressure Point
Nigeria’s financial system is heading into another wave of liquidity pressure as the Central Bank of Nigeria (CBN) prepares to manage an estimated N10.90 trillion inflow in June 2026, driven largely by maturing Open Market Operations (OMO) bills.
According to the latest Financial Markets Dealers Association (FMDA) Monthly Market Report, the June inflow represents a 3.51% increase from the N10.53 trillion recorded in May, signaling sustained pressure on monetary authorities despite recent tightening efforts.
At the heart of the surge is a massive N7.77 trillion expected from OMO maturities, which alone accounts for about 71% of total projected inflows. Other contributors include N1.80 trillion from FAAC allocations, N995.81 billion from Treasury Bills, and additional inflows from bond coupons, corporate instruments, and commercial papers.
The development comes at a time when the CBN is already aggressively trying to control excess liquidity in the system. In May 2026, the apex bank reportedly withdrew about N12.06 trillion from circulation, yet average system liquidity still rose by 7.76% to N5.22 trillion, showing how difficult it is to contain the cash flow cycle.
Despite these efforts, banks continued parking surplus funds with the CBN through the Standing Deposit Facility (SDF), which closed May at N5.89 trillion, reinforcing the reality of excess liquidity in the financial system. Analysts warn that June could require even stronger sterilisation measures if the CBN is to maintain stability in money market conditions.
The FMDA also noted that Nigeria’s broader fiscal environment—including heavy government spending and a projected N20.12 trillion budget deficit for 2026—continues to feed liquidity into the economy. While this supports market activity and fixed-income investments, it also complicates the CBN’s tightening strategy and raises concerns about inflationary pressure and currency stability.
source: nairametrics