By Boluwatife Oshadiya | August 28, 2026
Key Points
- CBN allotted N1.9 trillion in OMO bills at spot rates of 19.85% and 19.32%
- Investors submitted about N4.4 trillion in bids against the N1 trillion initially offered
- The auction marks the second OMO sale since retail investors regained direct access to the market
Main Story
The Central Bank of Nigeria (CBN) has raised about N1.9 trillion through its latest Open Market Operation (OMO) auction, cutting rates as investors continued to show strong demand for naira-denominated securities.
The CBN offered N1 trillion across 96-day and 152-day OMO bills at Thursday’s auction, but aggregate demand reached about N4.4 trillion, more than four times the amount initially offered.
The 152-day instrument attracted the stronger demand, reflecting investors’ continued appetite for longer-duration naira assets. The CBN ultimately allotted N1.9 trillion across both tenors at spot rates of 19.85% and 19.32%.
The auction was the second OMO operation since the CBN lifted restrictions on retail investors’ direct participation in OMO securities. The expanded investor base has increased access to the instruments beyond banks and foreign portfolio investors.
MarketForces Africa reported that the latest pricing represents a reduction from the elevated yields previously associated with OMO securities when retail investors were excluded from direct participation.
The increased participation comes as the CBN continues to use OMO bills and other government securities to manage excess liquidity and influence short-term money-market conditions.
What’s Being Said
“With an influx of additional funds from the retail segment, Apex Bank has begun to relax elevated yields on OMO papers, as seen in its Treasury bill pricing.” MarketForces Africa.
What’s Next
The CBN is expected to continue using OMO auctions alongside Treasury bills and other liquidity-management tools as it manages excess funds in the banking system.
Investor demand and the rates accepted at subsequent auctions will provide a clearer indication of whether the recent decline in OMO yields is becoming an established market trend.
Bottom Line
The Bottom Line: The latest auction shows that reopening OMO participation to retail investors has expanded demand for CBN securities while giving the central bank room to accept lower yields. For investors, the shift points to a changing return profile for short- and medium-term naira instruments.
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