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Nigerian banks in trouble after CBN’s bill auctions
['Oluwatobi Odeyinka']
Legit.ng
According to data obtained and reported by The Sun, the apex bank sold about N1.1 trillion in Nigerian Treasury Bills (NTBs) and an additional N2.6 trillion in OMO bills, a move that outweighed cash inflows from maturing securities.
The system’s liquidity deficit widened to N2.5 trillion despite large repayment inflows.
Photo: CBN, BloombergSource: Getty ImagesThe withdrawals came despite a N2.2 trillion repayment from the primary market, which would typically support liquidity.
Instead, the banking system’s liquidity shortfall widened to N2.5 trillion, from N1.8 trillion recorded the previous Friday.
CBN to manage liquidity through OMO billsOMO bills, which are mainly accessible to banks and foreign investors, remain one of the CBN’s key tools for managing liquidity.