The Central Bank of Nigeria (CBN) has resumed aggressive Open Market Operations (OMO), offering fresh bills to foreign portfolio investors and authorised deposit money banks (DMBs) as about ₦240 billion in OMO maturities come due.
The apex bank is also set to conduct additional OMO auctions worth ₦500 billion across standard tenors on Tuesday, reinforcing its effort to tighten excess liquidity and stabilise the financial system.
According to a market note by Erad Partners Limited, the move aligns with the CBN’s goal of maintaining positive real returns as headline inflation hovers at 24.23%. With a Nigerian Treasury Bills auction scheduled for Wednesday, investors are closely monitoring whether the fresh OMO supply will push yields higher across the curve.
Total market inflows from FGN bonds, NTBs, and OMO maturities are projected to hit ₦3.45 trillion in May, raising the stakes for monetary authorities in managing liquidity.
“Liquidity absorption and repricing of yields remain the key themes in the market,” Erad Partners’ Chief Investment Officer noted.
After a cautious first quarter, the CBN has now conducted three OMO auctions in as many weeks — a signal of its dual intent to manage liquidity and attract foreign currency inflows.
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