Nigeria’s financial system saw a sharp liquidity boost driven by treasury maturities, even as the central bank tightened monetary conditions.
Liquidity in Nigeria’s financial markets surged to an average net long position of ₦2.78 trillion as of January 23, 2026, up 31.75% from the previous week, according to Cowry Assets Management. Analysts attributed the rise mainly to ₦2.2 trillion in Nigerian Treasury Bills (NTB) maturities, which outweighed liquidity withdrawals by the Central Bank of Nigeria (CBN).
The CBN withdrew over ₦3 trillion through NTB auctions and Open Market Operations (OMO), but maturity inflows kept system liquidity elevated. Market rates rose as tighter liquidity management pushed yields higher, with overnight NIBOR climbing to 22.84%.
The Treasury Bills market turned bearish, with secondary market yields rising to 18.50%. Despite this, investor demand remained strong, especially for longer-dated instruments.
Analysts expect liquidity to stay positive in the near term, supported by upcoming OMO maturities and FAAC inflows, though bond auctions may keep funding rates elevated.
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