Nigeria’s banking system is awash with excess liquidity from Open Market Operation (OMO) repayments, driving a sharp rise in deposits placed with the Central Bank of Nigeria (CBN) just a day after the Monetary Policy Committee (MPC) reduced the returns banks earn on such funds.
The surge in liquidity pushed banks’ deposits with the CBN up by 149.7 percent on Wednesday, underscoring the scale of OMO inflows circulating in the system.
OMO refers to the process of buying and selling of government securities by the CBN as a key monetary polic
