Nigeria’s financial system has experienced a notable turnaround in liquidity, shifting from a deficit position to a surplus as inflows exceeded outflows. The system’s liquidity rebounded from a deficit of N207.6 billion in October to a surplus of N518.9 billion in November. This recovery was driven by inflows from primary market repayments (N1.3 trillion), Open Market Operation (OMO) repayments (N7.3 billion), and the Standing Lending Facility (SLF) of N8.3 trillion. These inflows surpassed outflows from OMO sales (N1.5 trillion), Primary Market Auctions (PMAs) worth N17 trillion, and the Standing Deposit Facility (SDF) of N3.1 trillion. Despite this liquidity improvement, the Open Buy Back (OPR) and Overnight (OVN) rates rose by 8.1 percentage points (ppts) and 8.5 ppts month-on-month (m/m) to 29.3 percent and 29.9 percent, respectively.
In the primary market, the Central Bank of Nigeria (CBN) offered an OMO of N300.0 billion and conducted two NT-bill auctions…