CBN raises OMO rates, allots ₦1.75tn amid liquidity surge

By Boluwatife Oshadiya | March 30, 2026

Key Points

• CBN allots ₦1.75 trillion in OMO bills as liquidity exceeds ₦8 trillion
• 96-day tenor dominates demand with ₦1.83 trillion subscriptions
• Stop rates rise to as high as 21.57% amid investor yield-seeking

Main Story

The Central Bank of Nigeria (CBN) raised stop rates across Open Market Operations (OMO) bills and allotted ₦1.75 trillion at its latest auction, responding to excess liquidity conditions in the financial system.

The auction, which offered ₦600 billion across 33-day, 75-day, and 96-day tenors, recorded total subscriptions of ₦2.81 trillion, reflecting strong investor appetite for high-yield instruments. System liquidity surged above ₦8 trillion, driven by ₦800 billion in matured OMO repayments and increased banking system inflows.

The 33-day bill attracted ₦844.50 billion in subscriptions, with ₦225.50 billion allotted at a stop rate of 21.57%. The 75-day instrument recorded relatively weaker demand at ₦142.25 billion, with ₦74.50 billion allotted at 19.75%.

Investor preference was clearly concentrated on longer-duration assets, as the 96-day bill drew ₦1.83 trillion—over nine times its offer size. The CBN allotted ₦1.45 trillion at a stop rate of 19.94%, slightly higher than previous auctions.

“The strong demand at the long end reflects a strategic move by investors to lock in yields before a potential rate moderation,” analysts at a Lagos-based investment firm said.

What’s Being Said

“Liquidity levels remain elevated, and investors are positioning for yield stability in the near term,” said analysts at Cowry Asset Management Limited.

“The oversubscription signals confidence in short-term sovereign instruments despite inflationary pressures,” a fixed-income trader at a Tier-1 bank noted.

What’s Next

• The next OMO auction cycle is expected to reflect tighter liquidity management by the CBN
• Market participants are watching for signals ahead of the next Monetary Policy Committee (MPC) meeting
• Treasury yields may begin to moderate if liquidity conditions tighten

Bottom Line

The Bottom Line: The CBN’s aggressive OMO allotment underscores its liquidity mop-up strategy while sustaining high yields to attract institutional capital. However, persistent demand for long-duration bills suggests markets are already positioning for a potential rate shift.

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