Okay News reports that debt repayments surged across Nigeria’s financial system this week as the Central Bank of Nigeria (CBN) executed more than N5 trillion in obligations between November 14 and November 21, 2025, marking one of the largest liquidity events of the year. The scale of these debt repayments coincided with declining bank deposit placements and heightened volatility across the banking sector.
The CBN settled N3.9 trillion in OMO obligations and N1.2 trillion in primary market instruments during the review period. Banks also cut back significantly on deposit placements with the regulator, reflecting tightening liquidity conditions.
Repayments fluctuated throughout the week, with OMO maturities dropping from N2.55 trillion on November 14 to N1.36 trillion on November 18. This decline signalled a reduction in maturing bills and a shift in liquidity dynamics.
OMO sales spiked between November 17 and 18 as the CBN absorbed N2.97 trillion in liquidity—one of the largest single-day interventions of 2025. However, activity slowed to N903.35 billion by November 19, highlighting ongoing market instability.
Primary market settlements added further pressure, with N689.55 billion paid out on November 20 under NTB and bond obligations before falling sharply the following day. Analysts said clustered maturities were responsible for the midweek surge.
Government issuances tracked similar volatility, raising about N1.09 trillion through NTBs and FGN bonds on November 20. Market participants adjusted positions as liquidity conditions shifted throughout the week.
Banks’ placements in the Standing Deposit Facility (SDF) dropped sharply from N2.50 trillion on November 19 to N1.15 trillion on November 21, a decline of N1.35 trillion in 48 hours. This reflected a broader trend of banks withholding excess cash amid liquidity uncertainty.
Opening balance figures also moved in line with market stress, falling from N210.75 billion on November 19 to N145.28 billion on November 20, before a mild recovery on November 21.
The combination of volatile OMO operations, reduced bank deposits, and large-scale financial obligations underscores how debt repayments continue to shape liquidity throughout the final quarter of 2025. Okay News reports that the CBN’s actions highlight the delicate balance required to manage liquidity as further obligations come due in December.
