The Central Bank of Nigeria (CBN) has raised ₦2.64 trillion from investors through its latest Open Market Operations (OMO) auction, offering attractive yields of up to 19.39 per cent on medium-term instruments.
At the auction, the apex bank initially offered ₦600 billion worth of OMO bills to eligible participants, including foreign portfolio investors and deposit money banks. However, strong demand resulted in total allotments significantly exceeding the offer size.
The OMO auction followed the maturity of ₦1.3 trillion worth of previously issued bills. Despite these repayments, the CBN succeeded in mopping up more liquidity than the amount that matured, effectively tightening conditions in the money market.
Subscription levels were robust, reflecting renewed investor interest in naira-denominated assets amid elevated yields across the yield curve. Market analysts linked the strong demand to surplus liquidity within the banking system.
Data showed that the banking sector opened the day with a surplus liquidity position of ₦3.77 trillion, representing an increase of ₦1.53 trillion compared with the previous trading session.
Auction results revealed that the CBN allotted ₦2.64 trillion across two maturities—203 days and 245 days. The 203-day bills cleared at a stop rate of 19.38 per cent, while the 245-day instruments were priced marginally higher at 19.39 per cent.
In the secondary market, trading in OMO bills remained muted as most investors focused on the primary auction. Yields in the segment were largely unchanged, with the average OMO yield holding steady at around 23 per cent, significantly above Nigeria’s headline inflation rate.
Fixed income analysts noted that the yield premium continues to underpin foreign and domestic investor appetite, even as the CBN sustains its liquidity management efforts through aggressive open market operations.
