The Central Bank of Nigeria undertook more than N5 trillion in debt repayments between November 14 and 21, in a week marked by sharp swings in liquidity, reduced bank placements, and unusually heavy maturities. Financial data monitored during the period showed that the apex bank settled N3.9 trillion in OMO obligations and another N1.2 trillion in primary market instruments, even as banks significantly cut the funds they placed with the regulator.
Repayments dropped steeply from N2.55 trillion on November 14 to N1.36 trillion by November 18, reflecting fewer maturing bills and tightening liquidity conditions. At the same time, OMO sales jumped to N2.97 trillion between November 17 and 18, one of the largest single-day liquidity absorption exercises recorded this year, before slowing to N903.35 billion on November 19.
The central bank also managed heavy primary market maturities totalling N1.2 trillion. The biggest payout came on November 20, when repayments hit N689.55 billion before falling sharply to N231.28 million on November 21.
Earlier in the week, repayments stood at N254.83 billion on November 17 and 18. Analysts attributed the midweek spike to clustered NTB and bond maturities. Primary market sales mirrored the volatility, with the government raising roughly N1.09 trillion through NTBs and FGN bonds on November 20.
A major trend during the week was the sharp drop in bank placements at the CBN’s Standing Deposit Facility. Balances fell from N2.50 trillion on November 19 to N1.65 trillion on November 20, and further to N1.15 trillion by November 21, a combined decline of N1.35 trillion in 48 hours. Bank opening balances also dipped, falling from N210.75 billion on November 19 to N145.28 billion the next day, before inching up to N150.18 billion on November 21.
The combination of massive repayments, erratic OMO issuance, and shrinking bank deposits points to deepening liquidity volatility in the financial system. For now, the CBN’s N5.1 trillion intervention underscores the scale of maturing obligations and the delicate balancing act ahead, with even larger maturities expected in December, the final month of 2025.
For MSMEs, this heightened liquidity pressure is likely to influence interest rates and credit conditions, making borrowing costs more sensitive to policy movements as the year winds down.
