CBN Absorbs N7.85 Trillion In OMO Sales To Banks, Foreign Investors In November

The Central Bank of Nigeria (CBN) mobilized approximately N7.85 trillion through Open Market Operations (OMO) auctions in November, driven primarily by strong participation from banks and foreign portfolio investors amid heightened system liquidity.

The financial sector has recently experienced a surge in excess cash, much of which found its way into the CBN’s Standing Deposit Facility (SDF), where banks have been earning returns higher than those available on Treasury Bills.

Deposit Money Banks, benefiting from a subdued appetite for lending, continued to channel large amounts of idle funds to the apex bank, taking advantage of the previously elevated 24.50% SDF rate.

With the expiration of additional OMO bills generating inflows of up to N1.1 trillion, the CBN responded by expanding its issuance across standard maturities to better moderate liquidity conditions in the banking system.

Banks and foreign portfolio investors—who make up the eligible investor base—showed strong appetite for the auctions, resulting in repeated oversubscriptions. Interest rates across short-term naira instruments remained relatively elevated, and the CBN introduced additional tenors to accommodate market demand.

TrustBanc Financial Group noted that the N7.85 trillion raised in November represents a 12.30% month-on-month increase compared to the N6.99 trillion sold in October.

Analysts anticipate that the large liquidity inflows expected in December will prompt further aggressive OMO issuance by the CBN. System liquidity closed the week at approximately N1.96 trillion, ahead of major inflows from maturing fixed-income instruments.

The market is expecting around N450 billion from a December 2, 2025 maturity, in addition to a N10.2 billion bond coupon payment, both of which are projected to bolster liquidity this week.

Absent significant liquidity-tightening measures from the CBN, experts say system liquidity will likely remain elevated.