By Boluwatife Oshadiya | March 31, 2026
Key Points
- Central Bank of Nigeria raises ₦1.7 trillion from OMO auction
- Total subscriptions hit ₦1.9 trillion, signalling strong investor demand
- Stop rates settle between 19.89% and 21.90% across short tenors
Main Story
The Central Bank of Nigeria on Monday raised ₦1.7 trillion through an Open Market Operations (OMO) auction, as it intensified liquidity management efforts in the financial system.
The apex bank offered ₦600 billion across 8-day, 99-day, and 120-day tenors to deposit money banks and foreign portfolio investors, but demand significantly outpaced supply, with total subscriptions reaching ₦1.9 trillion.
Ultimately, the CBN allotted ₦1.7 trillion at stop rates of 21.90%, 19.89%, and 19.94%, respectively, reinforcing the attractiveness of short-term naira assets amid tight monetary conditions.
The operation comes as system liquidity, though still elevated at a net surplus of ₦5.93 trillion last week, continues to moderate from ₦8.24 trillion due to settlement outflows tied to recent auctions. Analysts estimate the CBN has absorbed nearly ₦6 trillion across its last three OMO interventions, reflecting an aggressive stance toward excess liquidity control as Q1 closes.
What’s Being Said
“The sustained appetite for OMO bills reflects confidence in elevated yields and the CBN’s commitment to liquidity tightening,” said a Lagos-based fixed income analyst at a Tier-1 investment firm.
“Foreign portfolio investors remain active due to improved real returns driven by easing inflation expectations,” the analyst added.
What’s Next
- Further OMO auctions are expected in early Q2 to sustain liquidity tightening
- Market focus shifts to the next Monetary Policy Committee (MPC) decision
- Analysts will monitor liquidity trends and potential rate adjustments
The Bottom Line: The CBN’s aggressive liquidity mop-up underscores its tightening bias, with high-yield OMO instruments continuing to anchor investor demand and stabilise short-term rates.
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