The Central Bank of Nigeria has withdrawn a total of N4.48 trillion from the banking system within two sessions over six days through aggressive Open Market Operations (OMO), in a bid to manage excess liquidity and stabilise financial markets.
Data covering April 8 to April 15, 2026 shows intensified liquidity sterilisation efforts, particularly on April 9 and April 14, as the apex bank moved to absorb surplus cash from commercial banks and discount houses.
The large-scale interventions led to a sharp decline in banks’ opening balances, which fell to N99.05 billion on April 15, down from N135.76 billion the previous day.
Despite the tightening measures, significant liquidity remained in the system, with banks continuing to park funds in the Standing Deposit Facility (SDF), highlighting persistent excess cash conditions.
OMO sales accounted for the bulk of the liquidity mop-up, with N2.31 trillion withdrawn on April 9 and a further N2.17 trillion on April 14.
Additional transactions during the period included a N731.38 billion primary market sale and N357.89 billion repayment, alongside a N1.34 trillion OMO repayment recorded on April 14.
The Standing Deposit Facility balance also declined sharply from N6.98 trillion on April 8 to N3.69 trillion on April 15, indicating that while liquidity remains abundant, a portion has been successfully sterilised through policy instruments.
The central bank’s actions reflect a deliberate monetary strategy aimed at curbing inflationary pressures and supporting exchange rate stability by reducing excess cash circulating in the economy.
Market analysts note that the financial system remains highly liquid, with banks showing continued preference for placing funds with the CBN rather than expanding lending or taking on higher risks.
The pattern of interventions mirrors earlier actions in March, when the apex bank sterilised over N4.11 trillion in similar liquidity mop-up operations.
OMO auctions and the Standing Deposit Facility remain key tools used by the central bank to manage short-term interest rates and control money supply conditions.
While liquidity levels remain elevated, the recent decline in both opening balances and SDF deposits suggests a gradual tightening of financial conditions, which could influence interbank lending rates and broader credit availability in the coming weeks.
Overall, the data points to an increasingly active monetary policy stance as the central bank continues efforts to balance liquidity management with broader macroeconomic stability objectives.
