By Boluwatife Oshadiya | April 3, 2026
Key Points
- CBN raises ₦1.4 trillion through 138-day OMO bills at 19.91%
- Total subscriptions hit ₦1.5 trillion, signalling strong investor demand
- Apex bank intensifies liquidity mop-up as system liquidity nears ₦9 trillion
Main Story
The Central Bank of Nigeria (CBN) raised ₦1.4 trillion in its latest Open Market Operations (OMO) auction, offering a stop rate of 19.91% on 138-day bills as part of efforts to reduce excess liquidity and curb inflation.
The auction, which included 75-day and 138-day instruments, attracted total subscriptions of ₦1.5 trillion, reflecting strong investor appetite amid elevated yields. However, the apex bank allotted only the 138-day bills, with no sales recorded for the shorter-tenor securities.
The aggressive liquidity mop-up follows a surge in financial system liquidity to nearly ₦9 trillion, driven by maturing OMO bills and other inflows. The CBN has intensified sterilisation efforts in recent weeks to stabilise money supply and anchor inflation expectations.
Higher OMO rates are also strategically positioned to attract foreign portfolio investors, boosting dollar inflows into Nigeria’s financial markets while supporting the naira.
“The stop rate reflects the CBN’s commitment to tightening liquidity conditions and maintaining positive real returns for investors,” said a senior fixed income trader at a Lagos investment bank.
What’s Being Said
“The strong subscription levels indicate confidence in Nigeria’s fixed-income market, especially with yields approaching 20%,” said Johnson Chukwu, CEO, Cowry Asset Management.
“OMO auctions remain a key tool for liquidity control, but sustained tightening could raise borrowing costs across the economy,” said Uche Uwaleke, Professor of Capital Market, Nasarawa State University.
What’s Next
- Further OMO auctions expected as CBN continues liquidity tightening
- Investors to monitor inflation data for signals on rate direction
- Potential impact on lending rates and private sector credit conditions
Bottom Line
The Bottom Line: The CBN’s aggressive OMO strategy underscores its prioritisation of inflation control over growth stimulation. While effective for liquidity management, sustained high yields could tighten financial conditions across the broader economy.
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