An analysis of the apex bank’s financial activities between February 2 and February 6, 2026, shows that the inflows were largely the result of scheduled maturities rather than fresh liquidity creation. This development occurred even as the CBN sustained its aggressive monetary tightening stance aimed at curbing inflation and stabilising the foreign exchange market, highlighting a careful balancing act between allowing repayments and controlling excess liquidity.
Data from the CBN indicate that the largest single inflow came from OMO bill maturities. A total of ₦1.03 trillion worth of OMO bills matured on February 3, accounting for the bulk of the week’s liquidity injection. In addition, primary market repayments contributed ₦668.87 billion on February 5, alongside an earlier ₦24.38 billion redeemed earlier in the week, bringing cumulative repayments to over ₦1.72 trillion.
Despite these sizeable inflows, the CBN refrained from issuing fresh OMO bills to immediately mop up liquidity. Instead, it relied on Nigerian Treasury Bill auctions across the 91-day, 182-day, and 364-day tenors as alternative tools to absorb excess funds. Overall, the approach suggests that while liquidity pressures eased temporarily due to maturities, the apex bank remained cautious about allowing a sustained surge of funds into the system.
Banking system behaviour during the period points to continued tight liquidity conditions and subdued risk appetite. Rather than channel surplus funds into interbank lending or credit expansion, banks largely placed excess liquidity back with the CBN. Standing Deposit Facility (SDF) balances climbed to as high as ₦2.65 trillion on February 5 before easing slightly to ₦2.49 trillion on February 6, reflecting a strong preference for risk-free placements.
At the same time, opening balances of banks and discount houses remained relatively low, fluctuating between ₦85.59 billion and ₦163.8 billion throughout the week. The combination of low opening balances and elevated SDF placements underscores persistent funding tightness, despite the headline liquidity injections from maturing instruments.
The most significant inflows occurred early in the week, mirroring the scale of OMO maturities falling due. Analysts say this pattern reflects the impact of elevated interest rates and ongoing macroeconomic uncertainty, both of which continue to shape banks’ liquidity management decisions and discourage aggressive lending.
The repayment and liquidity management pattern highlights the delicate balance the CBN is attempting to maintain. While allowing large maturities to flow through the system, the apex bank is simultaneously deploying alternative instruments to prevent a prolonged build-up of excess liquidity.
For banks, the environment implies sustained pressure on funding costs and cautious lending behaviour, as liquidity remains expensive. Fixed-income investors, on the other hand, are likely to continue benefiting from elevated yields on government securities, supporting strong demand for treasury bills and bonds. For the broader economy, persistently tight financial conditions suggest that credit growth may remain constrained in the near term.
The developments in early February follow an especially aggressive liquidity tightening phase in January 2026. During that month, the CBN sterilised over ₦15 trillion from the banking system through OMO and treasury bill issuances, pushing funding costs higher and intensifying pressure in the interbank market as banks competed for limited cash.
Analysts estimate that about ₦8.61 trillion in inflows from OMO, treasury bill, and coupon maturities could enter the system in February. However, market participants broadly agree that overall liquidity conditions are likely to remain tight, as the CBN continues to prioritise price stability and foreign exchange market balance.
In essence, while the short-term liquidity relief from cumulative repayments offers temporary breathing space, it does not signal a shift away from the CBN’s broader tightening bias.