Liquidity in Nigeria’s monetary markets surged with common web lengthy place rising to N2.78 trillion as of Friday, January 23, 2026, representing a 31.75% improve from N2.11 trillion recorded the earlier week.
That is based on analysts at Cowry Belongings Administration Restricted, who attributed the spike to a mixture of huge maturity inflows and sustained investor exercise, regardless of aggressive liquidity administration by the Central Bank of Nigeria (CBN).
They famous that the enlargement occurred even because the CBN intensified efforts to rein in extra funds from the banking system.
What the analysts are saying
In line with the analysts, the sharp improve in liquidity was largely pushed by the reimbursement of about N2.2 trillion in Nigerian Treasury Payments (NTB) maturities.
This outweighed liquidity debits from N1.06 trillion in NTB public sale gross sales carried out midweek and N1.3 trillion in Open Market Operations (OMO) invoice settlements earlier within the week.
Though the CBN withdrew over N3 trillion by means of two separate auctions, maturity inflows proved ample to maintain system liquidity elevated. Spotlight of the numbers present:
- Common system liquidity: N2.78 trillion, up 31.75% (as of Friday, Jan. 23, 2026)
- Earlier week liquidity: N2.11 trillion
- NTB maturities influx: N2.2 trillion
- NTB public sale gross sales debit: N1.06 trillion
- OMO invoice settlements debit: N1.3 trillion
- OMO invoice allotment: N2.6 trillion
- Cease charges at 19.38% for 203-day invoice
- 19.39% for the 245-day invoice.
Market charges spike: The tighter liquidity administration translated right into a spike in yields. NIBOR rose throughout all tenors.
- The in a single day NIBOR elevated by 2 foundation factors (bps) to 22.84% on the shut of the week, whereas the 1-month, 3-month, and 6-month tenors additionally recorded will increase.
- Consequently, funding situations remained elevated, with the in a single day funding price rising by 10bps to 22.79%, whereas the Open Repo price remained unchanged at 22.50%.
- NITTY yields have been broadly increased throughout the curve, though the 1-month NITTY declined by 6bps to 16.64%. In distinction, the 3-month (16.69%), 6-month (17.88%), 9-month NITTY: (19.33%), and 12-month (21.18%) NITTY tenors trended upward.
“We anticipate selective sell-offs and elevated funding charges as buyers navigate liquidity dynamics and place forward of full-year 2025 earnings releases,” Cordros analysts projected of their report.
Treasury Payments market turns bearish as yields rise
The secondary market traded on a bearish observe, with selective sell-offs pushing the typical secondary market yield up by 37bps week-on-week to 18.50%.
- On the NTB major market public sale, the CBN supplied N1.15 trillion, attracting whole subscriptions of N3.4 trillion, highlighting robust demand.
- Almost 98% of bids have been concentrated within the 364-day tenor, underscoring buyers’ desire for longer-dated devices.
The CBN allotted about N1.1 trillion with cease charges for the 91-day and 182-day payments rising to fifteen.84% and 15.65%, respectively, whereas the 364-day invoice eased marginally to 18.36%.
OMO auctions:
Earlier within the week, the CBN additionally carried out an OMO public sale, providing N600 billion throughout the 203-day and 245-day tenors, which attracted N2.9 trillion in subscriptions and resulted in N2.6 trillion in allotments.
- Analysts count on liquidity to stay constructive within the coming week, supported by about N900 billion in OMO maturities and anticipated FAAC inflows.
Nonetheless, upcoming N900 billion FGN bond auctions on January 26, and repayments exceeding N900 billion may restrict the tempo of price moderation.
- “We count on charges to development marginally decrease, supported by a constructive system liquidity outlook. Liquidity situations are anticipated to be bolstered by an estimated N900 billion in OMO invoice maturities alongside anticipated December FAAC inflows.
- “Nonetheless, these inflows could also be partially offset by liquidity pressures from the deliberate FGN bond public sale, with over N900 billion in repayments, which may mood the extent of price moderation.
- “Consequently, whereas liquidity is predicted to stay constructive, funding charges might keep elevated relative to current averages,” Cowry Belongings acknowledged of their report.
What it’s best to know
System liquidity displays the cash available in Nigeria’s monetary system, influenced by forex in circulation, bank deposits, and financial coverage instruments corresponding to Open Market Operations (OMO).
- Nigeria’s broad cash provide has persistently expanded regardless of tightening measures by the Central Bank of Nigeria (CBN), underscoring persistent liquidity progress within the economic system.
- Forex exterior the banking system stays a dominant a part of the financial base, with current cash and credit score information exhibiting that a big share of money circulates exterior formal deposits, highlighting structural liquidity dynamics.
CBN makes use of instruments like OMO and Treasury Payments to handle extra liquidity and information interbank charges, at the same time as cash provide measures corresponding to M3 rise resulting from deposit progress and financial exercise.
