CBN Headquarters Abuja
Central Bank of Nigeria (CBN) has injected N5.21 trillion into the banking system between August 4 and August 11, 2026, ahead of its N700 billion Nigerian Treasury Bills (NTB) auction scheduled for Wednesday.
According to financial data published by the apex bank, the liquidity injection was largely driven by Open Market Operations (OMO) and primary market repayments.
The largest single-day injection occurred on August 11, when the CBN released N2.48 trillion through an OMO repayment. The amount accounted for about 47.6 per cent of the total liquidity returned to the banking system during the period.
The CBN also executed N2.73 trillion in primary market repayments, comprising N2.45 trillion on August 4 and N283.78 billion on August 6.
The development comes after the apex bank intensified liquidity management operations in July, when it mopped up about N7.18 trillion from the banking system through OMO sales.
The latest liquidity release is expected to influence demand and pricing at Wednesday’s NTB auction, where the CBN, on behalf of the Debt Management Office (DMO), is offering N700 billion in Treasury Bills.
The auction follows the cancellation of a similar N700 billion offering on August 5, after the CBN withdrew N4.69 trillion from the financial system through back-to-back OMO auctions on August 3 and 4.
The return of substantial liquidity to the banking system could strengthen demand for the Treasury Bills, particularly the 364-day instrument, which has attracted strong institutional interest at recent auctions.
At the July 29 auction, the CBN allotted about N1.25 trillion against the N700 billion offered, reflecting strong demand for the one-year bill.
Similarly, at the July 8 auction, the apex bank allotted N1.06 trillion, while the stop rate on the 364-day bill rose to 17.70 per cent from 17.34 per cent previously.
The latest liquidity injection is therefore expected to be closely watched by fixed-income investors, with the auction outcome likely to provide an indication of whether the additional cash in the banking system will push Treasury Bill yields lower or be absorbed by continued demand for government securities.
