FMDA’s Monthly report-February 2026: Highlights
- System liquidity increased by 9.27% in February, despite net liquidity withdrawals of over N1.83 trillion by the CBN, indicating sustained inflows into the banking system.
- Looking ahead, an estimated N10.55 trillion in inflows is projected for March, nearly 33% higher than February’s level.
- OMO maturities are expected to account for roughly half of total inflows. The overall impact on liquidity and the naira will depend on reinvestment behaviour, CBN sterilisation actions, global developments, and fiscal injections.
- Despite the CBN’s late-month FX purchases to prevent excessive naira strengthening that could distort investor positioning, the currency still appreciated across both the NFEM and parallel markets.
- Oil prices rose to around $80 per barrel amid escalating US–Iran tensions, supporting external buffers and FX sentiment.
- A full disruption of the Strait of Hormuz, which handles about 25% of global seaborne oil trade, could push crude prices toward $120–$150 per barrel, according to market estimates.
- Fixed income yields and interbank rates declined following the CBN’s interest rate cut.
