As N784 billion from maturing securities pours into the financial system, the Central Bank of Nigeria (CBN) is getting ready for new Open Market Operations (OMO) this week.
The step follows attempts to manage liquidity, stabilize the naira, and keep downward pressure on inflation.
Official statistics show that on September 1, 2025, the banking system started with N275.9 billion in liquidity, 10.4% greater than the previous week. Of the anticipated inflows, N459.6 billion comes from OMO maturities and N324.4 billion is from Nigerian Treasury Bill (NTB) maturities.
Among the most important monetary policy instruments used by the CBN is OMO. Selling short-term bonds to investors and banks helps the central bank lower the amount of money in circulation, thereby mitigating inflationary risks and stabilizing the overall economy.
The News Chronicle confirmed that under Governor Olayemi Cardoso, the CBN’s increasingly aggressive policy is reflected in this most recent liquidity mop-up. Compared to N7.45 trillion during the same period in 2024, the bank has greatly raised OMO sales since its appointment and removed N13.35 trillion from the financial system year-to-date. Analysts claim this shows one of the most aggressive liquidity-tightening efforts in Nigeria’s recent history.
Supported by FAAC payments and maturing OMO bills worth N758 billion, liquidity surged to N1.4 trillion last week from a deficit of N609.43 billion. Consequently, rates between banks dropped by over 200 basis points in the Open Repo Rate and Overnight Rate.
Market patterns reveal a range of investor views. OOMO yields edged lower at 25.49 percent while Treasury bills recorded higher yields, averaging 18.88 percent. Analysts say that the ongoing demand for government bonds reflects investors’ confidence in the central bank’s tightening policy.
The CBN’s activities have already started to produce results. From 22.22% in June to 21.88% in July, headline inflation dropped for the fourth month in a row. Although small, the drop showed that foreign portfolio inflows were drawn by economic tightening, which was gradually easing price pressures.
High OMO returns would continue to attract investors, increase FX liquidity, and stabilize the naira. Set to increase, inflows suggest that the apex bank appears committed to maintaining a strict monetary policy to ensure financial stability.
