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    Money Market Liquidity Hits N6trn as CBN Refuses OMO Bids

    Olu AnisereBy Updated:No Comments2 Mins Read
    Money Market Liquidity Hits N6trn as CBN Refuses OMO Bids

    Money Market Liquidity Hits N6trn as CBN Refuses OMO Bids

    The liquidity level in the financial system surged to N6.12 trillion as the Central Bank of Nigeria (CBN) rejected about N5 trillion subscription for its OMO bills auction on Tuesday.

    System liquidity closed at a net long position of ₦6.12 trillion, supported by an OMO repayment totaling ₦2.14 trillion and enhanced placement by deposit money banks.

    The market recorded an increase in banks’ placements at CBN’s Standing Deposit Facility (SDF) window to ₦3.92 trillion. Also, some banks with liquidity shortfall borrowed ₦14.30 billion from the Standing Lending Facility (SLD) window.

    Consequently, funding rates, the overnight lending rate, and the open repo rate (OPR) remained firm at 22.79% and 22.50%, respectively, according to data from the FMDQ.

    Nigerian Treasury bills traded bullishly in the secondary market on the back of rising interest in the naira asset. Hence, the average benchmark yield declined marginally by -1bp to close at 18.45%.

    Similarly, proceedings in the secondary market for OMO market also had a bullish undertone as the average benchmark yield declined marginally by -1bp to close at 22.15%.

    System liquidity will likely remain buoyant despite the upcoming debit from the latest FGN bond auction and expected OMO auction. The financial system liquidity is expected to drop after the settlement of ₦1.54 trillion for the Jan-26 Bond auction on Wednesday.

    The CBN floated an OMO bill auction totalling N600 billion across two standard tenors to mop up excess liquidity in the financial system. However, subscription came strongly. Investors staked N4.9 trillion, but there was no allotment. Money Market Liquidity Hits N6trn as CBN Refuses OMO Bids

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    Olu Anisere is a financial and economic journalist at MarketForces Africa, specialising in African macroeconomic policy, international finance, energy markets, and continental development.He covers major multilateral institutions, including the International Monetary Fund (IMF), World Bank, and the United Nations Economic Commission for Africa (ECA), providing readers with frontline reporting on policies shaping Africa's economic trajectory.Olu has reported extensively on Nigeria's fiscal and monetary policy landscape, including CBN interest rate decisions, Nigeria's bond market, FX inflows, and the country's engagement with global financial institutions.His coverage spans IMF and World Bank Spring and Annual Meetings, African Ministers of Finance conferences, and high-level economic forums where Africa's development agenda is set.His reporting captures perspectives from Africa's most influential economic voices, including Tony Elumelu, senior IMF officials, and CBN leadership, bringing institutional insight and policy depth to MarketForces Africa's readers.Olu also covers Inside Africa — tracking economic, investment, and development stories from across the continent. Olu Anisere is based in Lagos, Nigeria.

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