The Central Bank of Nigeria (CBN) executed more than N5 trillion in CBN debt repayments between November 14 and 21, a period marked by sharp liquidity swings and declining bank deposit placements.
The apex bank’s internal settlement data shows that N3.9 trillion in CBN debt repayments for OMO maturities and N1.2 trillion in primary market instruments were cleared during the week as banks reduced excess cash placements.
Early in the review period, total CBN debt repayments fell steeply from N2.55 trillion on November 14 to N1.36 trillion on November 18, reflecting fewer maturing bills and tightening liquidity conditions.
On the issuance side, OMO sales surged to N2.97 trillion between November 17 and 18 before dropping to N903.35 billion on November 19, underscoring the intensity of CBN’s liquidity management despite ongoing CBN debt repayments.
The regulator also settled N1.2 trillion in CBN debt repayments through primary market instruments, with the largest payout occurring on November 20 when obligations hit N689.55 billion before declining sharply the following day.
Market analysts attribute this spike in CBN debt repayments to the clustering of NTB and bond maturities around midweek, which intensified pressure on short-term liquidity.
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Primary market sales mirrored the week’s volatility as the government raised N1.09 trillion via NTBs and FGN bonds on November 20, adding complexity to liquidity dynamics driven by CBN debt repayments.
Banks also reduced their placements at the Standing Deposit Facility, with balances dropping from N2.50 trillion on November 19 to N1.15 trillion by November 21, widening liquidity gaps linked to heavy CBN debt repayments.
Opening bank balances reflected similar strain, falling from N210.75 billion to N145.28 billion before inching up slightly, signalling tension across the interbank system amid continuous CBN debt repayments.
The combination of large maturities, volatile OMO issuance, and weakened deposit placements points to intensifying liquidity risk, even as CBN debt repayments surpassed N5.1 trillion for the week.
With more obligations due in December, analysts warn that the apex bank’s liquidity-balancing strategy will remain under pressure as year-end financing needs rise alongside further CBN debt repayments.
