Nigeria’s money market remained under sustained pressure in January 2026, as the Central Bank of Nigeria (CBN) continued its aggressive monetary tightening, draining cash from the financial system.
Average system liquidity for the month settled at a net negative N2.4 trillion, slightly better than December’s -N2.9 trillion, reflecting a modest recovery despite ongoing constraints.
During the period, the CBN withdrew more than N15 trillion through various liquidity management operations, including:
Open Market Operations (OMO) sales: N8.5 trillion
Standing Deposit Facility placements: N2.9 trillion
Primary market issuances: N3.7 trillion
These outflows were partly offset by inflows of approximately N8.4 trillion from OMO maturities, primary market repayments, and Standing Lending Facility usage, leaving the market in a sustained liquidity deficit and keeping interbank funding conditions tight.
The marginal recovery masked the scale of outflows, driven mainly by OMO sales, SDF placements, and primary market issuances, highlighting the continued tightening of Nigeria’s money market amid the CBN’s efforts to control inflation and stabilize the economy.
