Nigeria’s financial system is expected to receive about N10.90 trillion in liquidity inflows in June, driven largely by maturing Open Market Operation (OMO) bills, a development that could complicate the Central Bank of Nigeria’s efforts to maintain tight monetary conditions, according to the latest FMDA market report.
The projected inflow is 3.5 percent higher than the N10.53 trillion estimated for May and comes despite aggressive liquidity absorption by the Central Bank.
According to FMDA, average system liquidity rose by 7.76 percent to N5.22 trillion in May, even as the CBN withdrew an estimated N12.06 trillion through OMO auctions and other liquidity management operations.
Analysts noted that system liquidity represents the net balance of funds available in the banking sector after accounting for inflows and outflows.
FMDA said substantial inflows from maturing securities, Federation Account Allocation Committee (FAAC) allocations, bond coupon payments and other sources injected liquidity
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