By Boluwatife Oshadiya | March 4, 2026
Key Points
- CBN allots ₦235.60 billion across 98-day and 105-day OMO tenors
- Stop rates settle at 19.35% and 19.40% respectively
- Financial system liquidity rises to ₦5.64 trillion
Main Story
The Central Bank of Nigeria (CBN) offered a stop rate of 19.40% on its 105-day Open Market Operations (OMO) bill at the latest auction, as the apex bank moved to mop up excess liquidity in the financial system.
The auction targeted ₦600 billion across three tenors — seven-day, 98-day, and 105-day instruments. However, the CBN ultimately allotted ₦235.60 billion exclusively across the 98-day and 105-day maturities.
Demand moderated compared with previous auctions. Banks and foreign portfolio investors submitted bids totaling ₦711.85 billion, reflecting a slowdown in subscription levels despite robust system liquidity.
Financial system liquidity rose sharply to ₦5.64 trillion from ₦4.38 trillion, supported by ₦956.20 billion in OMO maturities and increased placements at the CBN’s Standing Deposit Facility.
The stop rates settled at 19.35% for the 98-day tenor and 19.40% for the 105-day bill.
The Issues
The auction comes amid sustained liquidity surges in the money market as maturing instruments inject fresh funds into the banking system. The CBN has maintained an active sterilisation strategy to curb inflationary pressures and manage short-term rate volatility ahead of upcoming monetary policy decisions.
What’s Being Said
“The lower allotment suggests the CBN is carefully calibrating liquidity withdrawal without tightening financial conditions excessively,” said Johnson Chukwu, Managing Director, Cowry Asset Management.
A treasury executive at a Tier-1 bank noted that “Liquidity remains elevated, but investor appetite is becoming more yield-sensitive at current rate levels.”
What’s Next
- Further OMO auctions are expected if liquidity remains elevated
- Market participants will watch interbank rates for transmission effects
- The next Monetary Policy Committee meeting will guide rate direction
The Bottom Line: The CBN’s 19.40% stop rate reinforces its liquidity management stance, but moderated demand signals growing yield sensitivity among institutional investors.
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