FMDA’s Monthly Report-January-2026

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.

Download the full report here