By Boluwatife Oshadiya | June 15, 2026
Key Points
- CBN sold N3.83 trillion worth of OMO bills across two auctions last week
- Total subscriptions approached N4 trillion, reflecting strong investor appetite
- Banking system liquidity eased to N4.71 trillion following aggressive liquidity mop-up operations
Main Story
The Central Bank of Nigeria (CBN) raised N3.83 trillion through two Open Market Operations (OMO) auctions last week as it intensified efforts to absorb excess liquidity from the financial system.
The auctions attracted strong participation from deposit money banks and foreign portfolio investors, with total subscriptions nearing N4 trillion. The move comes as the apex bank continues to deploy monetary tools aimed at curbing inflationary pressures and stabilising financial markets.
At the first auction, the CBN offered N600 billion across short- and medium-term tenors. Investor demand reached N1.69 trillion, with the longer-dated instrument attracting the bulk of subscriptions. The 134-day OMO bill alone received nearly N1.6 trillion in bids against an offer size of N300 billion.
A second auction held later in the week offered another N600 billion across 110-day and 138-day maturities. Demand remained strong at N2.27 trillion, with the apex bank allotting N2.14 trillion.
Meanwhile, liquidity in the banking system declined marginally by 1.69% week-on-week to N4.71 trillion from N4.79 trillion. Money market rates closed mixed, with the Open Repo Rate holding at 22.00%, while the Overnight Lending Rate rose slightly to 22.16%.
“The strong demand for longer-dated OMO bills reaffirms the market’s continued preference for higher-yielding instruments amid prevailing liquidity conditions,” Coronation Research said.
What’s Being Said
“Investor demand remains concentrated at the longer end of the curve as market participants seek to lock in attractive yields,” Coronation Research stated.
“The CBN’s liquidity management strategy continues to attract both domestic and foreign investors searching for high real returns,” fixed-income analysts said.
What’s Next
- Investors are expected to closely monitor upcoming OMO auctions for potential changes in stop rates.
- Market participants will watch for further liquidity mop-up measures by the CBN ahead of future monetary policy decisions.
- Attention will also focus on inflation data and its implications for interest-rate direction.
The Bottom Line:
The overwhelming demand for OMO bills underscores investor confidence in Nigeria’s high-yield fixed-income market. For the CBN, the auctions remain a critical tool for managing liquidity while supporting broader monetary stability objectives.
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