The Central Bank of Nigeria has commenced its 2026 open market operations on a firm footing, allotting ₦2.71 trillion worth of Open Market Operation (OMO) bills in its first auction of the year.
The sizeable allotment signals a more assertive liquidity management stance by the apex bank, amid growing short-term funding requirements by the federal government and sustained investor appetite for high-yield naira instruments.
At the auction, the CBN initially offered ₦600 billion in OMO bills, targeting participation from foreign portfolio investors and deposit money banks, which remain the most active players in the segment. The offer was split across 161-day and 210-day maturities.
Market participants reported strong demand, with subscription levels significantly exceeding the offer size. Offshore investors and local banks collectively submitted bids totalling approximately ₦2.7 trillion, highlighting robust confidence in the Nigerian fixed-income market despite ongoing macroeconomic adjustments.
Given the scale of demand, the central bank ultimately allotted ₦2.7 trillion across the two tenors, effectively accommodating most bids. The stop rates were set at 19.34 percent for the 161-day bill and 19.40 percent for the 210-day instrument.
Analysts noted that the yields remain compelling, particularly against the backdrop of easing inflationary pressures and improving FX stability. The pricing reinforces the attractiveness of OMO bills as a liquidity management and portfolio diversification tool for both domestic and offshore investors.
Investment banking firms have interpreted the auction outcome as a signal that the CBN is prepared to actively absorb excess liquidity from the system while supporting yield stability. The strategy also aligns with broader monetary tightening objectives aimed at anchoring inflation expectations and sustaining investor confidence.
As demand for naira assets continues to deepen, market watchers expect the central bank to maintain an active presence in the primary market, using OMO instruments to balance liquidity conditions while navigating fiscal and external pressures.
 bills in its first auction of the year.){kind=link}