ABUJA, Nigeria — The Central Bank of Nigeria (CBN) withdrew an estimated N2.8 trillion (approximately $1.87 billion) from the banking system in the week ended April 25, intensifying efforts to curb excess liquidity and stabilise the foreign exchange market.
Okay News reports that the apex bank debited N894 billion through Nigerian Treasury Bills (NTB) sales and a further N1.9 trillion via Open Market Operations (OMO) auctions, according to money market data. The combined N2.79 trillion withdrawal was only partially offset by maturing NTBs worth about N758 billion, leaving system liquidity at N4.06 trillion (approximately $2.71 billion).
Short‑term rates edged lower, with the overnight rate declining to 22.20 percent and the funding rate holding at 22.00 percent. The CBN has relied on market‑based tools to anchor rates and manage demand for foreign exchange, analysts said.
Cordros Research stated: “Against this backdrop, the CBN is expected to maintain a delicate balance between liquidity management and exchange rate stability. We anticipate that the apex bank will deploy targeted FX interventions to curb excessive volatility, particularly if demand pressures intensify in the near term.”
External reserves fell 0.4 percent week‑on‑week, or $141.17 million, to $48.4 billion, reflecting sustained FX interventions by the CBN and moderating oil‑driven inflows. At the NFEM window, the naira weakened 1.1 percent to N1,358.44/$1, while the parallel market rate remained at N1,390.00/$1.
Afrinvest Research said: “We expect the naira to trade within a stable band, supported by sustained liquidity conditions and continued market presence of CBN.”
Cowry Research noted: “While expected OMO maturities and fiscal inflows may provide some relief, additional bond issuances could exert renewed pressure on system liquidity.”
The CBN continues to tighten liquidity to tame inflation and reduce speculative dollar demand, even as global uncertainties and the US–Iran conflict dampen portfolio inflows into frontier markets.
 withdrew an estimated N2.8 trillion (approximately $1.87 billion) from the banking system in the week ended April 25, intensifying efforts to curb excess liquidity and stabilise the foreign exchange market.){kind=link}