CBN injects over N1.7 trillion liquidity through cumulative repayments in early February 

The Central Bank of Nigeria injected greater than N1.7 trillion into the banking system within the first week of February 2026 by way of cumulative repayments of Open Market Operations payments and first market devices.

That is in keeping with BusinessTimes’ evaluation of the apex bank’s monetary actions overlaying February 2 to February 6, 2026.

The liquidity influx got here even because the CBN maintained an aggressive financial tightening stance geared toward curbing inflationary pressures and supporting stability within the international trade market, signalling a cautious steadiness between repayments and liquidity management.

What the info is saying:

Monetary knowledge from the CBN present that the majority of the liquidity injection throughout the interval was pushed by maturing devices slightly than recent liquidity creation.

Essentially the most vital influx occurred early within the week, reflecting the dimensions of OMO maturities falling due.

• A complete of N1.03 trillion in OMO payments matured on February 3, accounting for the only largest liquidity injection throughout the week.
• Major market repayments added N668.87 billion on February 5, alongside an earlier N24.38 billion redeemed earlier within the week, taking cumulative repayments above N1.72 trillion.
• Relatively than difficulty recent OMO payments to mop up liquidity, the CBN relied on Nigerian Treasury Invoice auctions throughout the 91-day, 182-day, and 364-day tenors to soak up extra funds.

Total, the info point out that whereas liquidity pressures eased briefly as a consequence of repayments, the CBN remained cautious in its method to re-injecting funds into the system.

Extra insights

Regardless of the sizeable inflows from maturing devices, banking system behaviour means that liquidity circumstances stay tight and danger urge for food subdued.

• Banks largely selected to put surplus funds again with the apex bank slightly than increase interbank exercise or lending.
• Standing Deposit Facility balances climbed to as excessive as N2.65 trillion on February 5 earlier than easing to N2.49 trillion on February 6, reflecting continued desire for risk-free placements.
• Opening balances of banks and low cost homes stayed comparatively low, fluctuating between N85.59 billion and N163.8 billion throughout the week.

The mix of low opening balances and excessive SDF placements underscores persistent funding tightness regardless of the massive headline liquidity injections.

This behaviour highlights the impression of elevated rates of interest and ongoing uncertainty, which proceed to form banks’ liquidity administration selections.

Why this issues: 

The sample of repayments and liquidity administration underscores the fragile balancing act the CBN is trying to keep up.

Whereas permitting giant maturities to cross by way of the system, the apex bank is concurrently utilizing different instruments to stop a sustained surge in extra liquidity.

• For banks, this surroundings implies continued strain on funding prices and cautious lending behaviour as liquidity stays costly.
• For fixed-income buyers, elevated yields on authorities securities are more likely to persist, supporting sturdy demand for treasury payments and bonds.
• For the broader financial system, tight monetary circumstances counsel that credit score development might stay constrained within the close to time period.

In essence, the short-term liquidity aid offered by cumulative repayments doesn’t sign a shift away from the CBN’s broader tightening bias.

What you must know 

The CBN’s liquidity actions in January 2026 ranked among the many most aggressive in latest historical past, reflecting its dedication to rein inflation and stabilise the international trade market.

• These actions set the tone for the tight circumstances nonetheless evident in early February.
• In January 2026, the apex bank sterilised over N15 trillion from the banking system by way of OMO and treasury invoice issuances.
• The aggressive mop-up pushed funding prices greater and intensified interbank price pressures as banks competed for restricted money.

Analysts estimate that about N8.61 trillion in inflows from OMO, treasury invoice, and coupon maturities may hit the system in February.

Nevertheless, regardless of these anticipated inflows, market individuals broadly agree that general liquidity circumstances will stay tight because the CBN continues to prioritise value stability and international trade market steadiness.