Banks park N8.31 trillion at CBN despite N724 billion OMO mop-up
AI Executive Briefing
Gemini Flash AI~45s readBanking system liquidity remained elevated in early November 2026, with SDF balances climbing to N8.311 trillion. Despite a N724.32 billion OMO mop-up by the CBN, excess cash continues to flow into deposit facilities rather than operating accounts.
Context & Background
- ✦The CBN is actively managing banking system liquidity through OMO auctions to address high levels of cash in the system.
- ✦The Financial Markets Dealers Association (FMDA) projects significant liquidity inflows of approximately N13.79 trillion for November, driven by maturities and FAAC allocations.
Key Figures & Named Entities
Central Bank of Nigeria (CBN):Conducted an OMO auction with a 1.89x bid-to-cover ratio.N8.311 trillion:Total Standing Deposit Facility (SDF) balance as of November 6, 2026.
Outlook & Next Steps
The market anticipates further OMO auctions beginning the week of November 9, with investors monitoring the upcoming Monetary Policy Committee meeting to see if the CBN will increase mop-up volumes to match projected inflows.
Key Takeaways
AI Summary- Banking system liquidity remains high, with Standing Deposit Facility (SDF) balances reaching N8.311 trillion as of November 6, 2026.
- The Central Bank of Nigeria (CBN) conducted an OMO auction on November 6, raising N724.32 billion, which represents only 38.37% of the N1.887 trillion in total bids received.
- Despite the CBN's mop-up efforts, SDF placements grew by 19.30% between November 4 and November 6, signaling that the auction had a limited impact on overall system liquidity.
Key Facts:November 4 to November 6, 2026: Banks' opening balances dropped by N417.96 billion between November 4 and November 6, 2026.November 6, 2026: The CBN allotted N724.32 billion during the OMO auction held on Friday.
Editorial Excerpt
Banking system liquidity stayed substantial in the week ended November 6, 2026, with Standing Deposit Facility (SDF) balances rising to N8.311 trillion even as the Central Bank of Nigeria (CBN) raised N724.32 billion at its OMO auction on Friday, November 6.
Frequently Asked Questions About This Story
How much did the CBN raise in the OMO auction on November 6?
The CBN raised N724.32 billion, accepting 38.37% of the N1.887 trillion in bids submitted.
What is the trend of SDF placements during the first week of November 2026?
SDF placements rose steadily throughout the week, increasing from N6.966 trillion on November 4 to N8.311 trillion by November 6.
