FMDA’s Monthly report-August 2026: Highlights
-
- System liquidity improved significantly in August, rising by 56.17% to N4.65 trillion from N2.98 trillion in July, driven by sizeable inflows from maturing securities, FAAC allocations, and other repayments, which more than offset the CBN’s liquidity mop-up operations.
- Looking ahead, inflows are projected at N15.72 trillion in September, about 16.10% higher than the N13.54 trillion recorded in August. OMO maturities are expected to account for approximately 74% of total inflows, although the net liquidity impact will depend on the CBN’s sterilisation stance.
- The naira appreciated by 1.5% in the NFEM window during August, supported by improved FX liquidity and stronger market turnover, which rose to $14.68 billion, the highest level in five months.
- Average Brent crude oil prices increased by 5% to $87.26/bbl, as geopolitical tensions in the Middle East continued to underpin supply concerns. The elevated price environment provides a supportive buffer for Nigeria’s external sector.
- External reserves rose by 3.05% to $53.51 billion, marking the highest level since 2008 and reflecting improved foreign exchange inflows and ongoing policy reforms.
- Global bond yields trended upward, as persistent inflation concerns and geopolitical risks, particularly in the Middle East, kept oil prices elevated above $90/bbl in recent periods. In contrast, domestic bond yields declined, with Nigeria’s average bond yield moderating to 16.92% in August from 17.06% in July, indicating strong local demand conditions. Download the full report here
