FMDA’s Monthly report-January 2026: Highlights
- System liquidity dipped sharply in January as the CBN mopped up excess funds, with net liquidity withdrawals estimated at over N6.76 trillion through OMO operations and Treasury bill auctions.
- Looking ahead, an estimated N8.61 trillion in inflows is expected in February, with OMO maturities accounting for about 53% of the total. The impact of these inflows on system liquidity and the naira will depend largely on reinvestment behaviour, CBN sterilisation actions, and fiscal-side liquidity injections.
- In January, a combination of rising external reserves, firmer oil prices, OMO auctions, a softer U.S. dollar, and other supportive factors helped provide a buffer for the naira.
- Oil prices strengthened during the month as geopolitical risk premiums rose amid concerns over potential U.S. action against Iran.
- Fixed income yields remained elevated in January compared with December 2025, reflecting tight interbank funding conditions and firm rate expectations, as OVN and OPR rates trended higher during the month.
