Last week, the Central Bank of Nigeria (CBN) repaid over ₦5 trillion as bank deposits fell and markets became volatile.
At the start of the week, repayments dropped from ₦2.55 trillion on November 14 to ₦1.36 trillion by November 18, signalling tighter liquidity.
CBN Repays ₦5 Trillion Amid Market Volatility
Meanwhile, banks sharply reduced the funds they placed with the CBN, reflecting caution during a turbulent week.
In response, OMO sales surged to ₦2.97 trillion between November 17 and 18, marking one of the largest interventions recently.
However, by November 19, OMO sales slowed sharply to under ₦1 trillion, highlighting temporary market relief.
Surge And Slowdown In OMO And Primary Market
Primary market repayments also surged to ₦1.2 trillion, peaking at ₦689.55 billion on November 20 before falling again.
The following day, repayments dropped to ₦231.28 million, emphasising the week’s volatility in debt flows.
Analysts attributed the midweek spike to clustered NTB and bond maturities.
Similarly, primary market sales mirrored the volatility, as the government raised about ₦1.09 trillion through NTBs and bonds.
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Banks’ Deposits And Liquidity Stress
At the same time, banks reduced deposits at the CBN’s Standing Deposit Facility from ₦2.50 trillion to ₦1.15 trillion within 48 hours.
Moreover, banks’ opening balances fell from ₦210.75 billion to ₦145.28 billion before slightly rising by Friday.
Overall, the week reflected a delicate balancing act as the CBN managed liquidity and repayments simultaneously.
By repaying ₦5 trillion aggressively, the CBN demonstrated the scale of debt obligations in the final weeks of 2025.
Looking ahead, market watchers expect December to be challenging, as more maturities will test the central bank’s control.
Furthermore, the combination of erratic OMO issuance, heavy repayments, and falling deposits highlighted the financial system’s fragility.
Consequently, Nigeria’s debt markets experienced both large interventions and sudden contractions, showing persistent volatility.
