June 02, (THEWILL) — The Central Bank of Nigeria (CBN) is set to face renewed liquidity management challenges in June 2026 as an estimated N10.90 trillion is expected to flow into the financial system, driven largely by the maturity of Open Market Operations (OMO) bills.
According to the Financial Markets Dealers Association (FMDA) Monthly Market Report released on June 1, projected inflows for June represent a 3.51 percent increase from the N10.53 trillion recorded in May.
The surge comes despite the apex bank’s aggressive liquidity tightening efforts in May, during which approximately N12.06 trillion was withdrawn from the financial system through various monetary operations.
However, the FMDA noted that average system liquidity still rose by 7.76 percent to N5.22 trillion, underscoring the difficulty of containing excess liquidity amid recurring inflows.
Data from the report show that maturing OMO bills will account for the largest share of June’s liquidity injections.
OMO maturities are projected at N7.77 trillion, up from N7.17 trillion in May, representing about 71 percent of total expected inflows.
Additional inflows are expected from Federation Account Allocation Committee (FAAC) disbursements estimated at N1.80 trillion and Treasury Bills maturities of N995.81 billion.
FGN bond coupon payments, corporate bond maturities and commercial paper maturities are projected at N278.99 billion, N49.04 billion and N10.46 billion, respectively.
The report highlighted the cyclical nature of liquidity management, noting that OMO instruments deployed to absorb excess cash eventually mature and inject substantial funds back into the banking system, requiring fresh sterilisation measures.
With the Standing Deposit Facility closing May at N5.89 trillion, indicating persistent surplus liquidity, analysts believe the CBN may need to intensify its liquidity mop-up operations in June.
FMDA added that strong liquidity conditions are likely to support fixed-income investments and ease funding pressures in the interbank market, while investors are advised to maintain prudent foreign exchange risk management amid ongoing currency market uncertainties.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
