The Central Bank of Nigeria (CBN) executed more than N5 trillion in debt repayments between Friday, November 14 and Friday, November 21, a turbulent week marked by declining bank placements and heightened liquidity pressures.
According to data tracked by Fintechinights, the apex bank settled N3.9 trillion in Open Market Operation (OMO) obligations and an additional N1.2 trillion in primary market instruments. These repayments coincided with a sharp reduction in bank deposits placed with the CBN, reflecting tightening liquidity across the financial system.
OMO flows highlight aggressive liquidity management
Repayments fell steeply at the start of the week, dropping from N2.55 trillion on November 14 to N1.36 trillion on November 18, a massive decline of N1.18 trillion, as fewer OMO bills matured.
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Meanwhile, OMO sales swung dramatically. Between November 17 and 18, the CBN absorbed N2.97 trillion, one of its largest liquidity mop-up operations in recent months. However, by November 19, OMO sales plunged to N903.35 billion, underscoring the week’s volatility.
Primary market repayments hit N1.2 trillion
The CBN also managed a heavy pipeline of primary market obligations, settling N1.2 trillion in repayments during the week.
The largest payout came on November 20, when primary market maturities surged to N689.55 billion, before collapsing to N231.28 million the following day. Earlier in the week, repayments totaled N254.83 billion on November 17 and 18, a sharp rise from levels recorded on November 14.
Analysts noted that clustered Nigerian Treasury Bills (NTBs) and FGN bond maturities contributed significantly to the midweek spike. The government also raised N1.09 trillion through fresh NTB and bond issuances on November 20.
Banks slash SDF placements as cash tightens
Liquidity pressures intensified as banks sharply reduced funds placed at the CBN’s Standing Deposit Facility (SDF). Balances fell from N2.50 trillion on November 19 to N1.65 trillion on November 20, and further to N1.15 trillion on November 21, a combined drop of N1.35 trillion in just 48 hours.
Bank opening balances showed similar strain, sliding from N210.75 billion on November 19 to N145.28 billion a day later, before inching up to N150.18 billion on November 21.
Liquidity turbulence persists ahead of December maturities
The interplay of massive debt settlements, erratic OMO issuance, and declining bank deposits underscores a period of intense liquidity volatility.
The CBN’s N5.1 trillion repayment effort within one week highlights the scale of maturing obligations it is managing. With even larger maturities expected in December 2025, analysts say liquidity conditions may remain unstable as the regulator continues its delicate balancing act.
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