The Central Bank of Nigeria (CBN) has withdrawn approximately N6.88 trillion from the financial system through Open Market Operations (OMO) auctions in the first two weeks of June 2026, as it intensifies efforts to manage liquidity and curb inflationary pressures.
Data published by the apex bank at the close of business on June 11, 2026, and analysed by Nairametrics, shows that the liquidity mop-up represents about 63 per cent of the total projected inflows for the month, underscoring the scale of the CBN’s ongoing sterilisation operations.
The aggressive intervention comes against a backdrop of projected inflows of N10.90 trillion into the financial system in June, according to the Financial Markets Dealers Association (FMDA). Of this amount, N7.77 trillion is expected from OMO maturities alone, raising concerns over potential excess liquidity in the banking system.
Specifically, CBN conducted OMO auctions on June 2, 8, and 11, recording total successful allotments of N6.88 trillion from investor subscriptions exceeding N7.2 trillion.
Stop rates during the period ranged between 19.98 per cent and 21.89 per cent, reflecting persistently elevated yields despite tight monetary conditions.
Despite the CBN’s aggressive mop-up efforts, system liquidity conditions remain robust. The apex bank had already withdrawn an estimated N12.06 trillion in May, yet average system liquidity still rose to N5.22 trillion, indicating persistent cash availability within the banking system.
These inflows, combined with strong investor demand for fixed-income securities, continue to support elevated subscription levels across OMO auctions.
With more than half of June’s projected inflows already sterilised within the first two weeks, market participants expect the CBN to sustain its active presence in the money market through the remainder of the month.
Analysts note that while the central bank has made significant progress in absorbing excess liquidity relative to projected inflows, additional injections into the system before month-end could still necessitate further sterilisation measures to maintain monetary stability and contain inflationary pressures.
Amid all the exercises, Nigeria’s headline inflation rate rose to 15.93 percent in May 2026, according to the latest Consumer Price Index (CPI) report.
The National Bureau of Statistics (NBS) data showed that the CPI increased to 140.7 in May 2026, representing a 2.4-point rise from the previous month’s 138.3, indicating continued upward pressure on consumer prices across the economy.
According to the report, on a month-on-month basis, headline inflation stood at 1.75 percent in May 2026. This represents a decline of 0.39 percentage points compared to April 2026, when the rate was 2.13 percent.
The latest record marks the third consecutive hike in 2026.
