By Boluwatife Oshadiya | June 23, 2026
Key Points
- CBN raised N2.67 trillion from its latest Open Market Operations (OMO) auction
- Stop rates settled at 20.40% for 99-day bills and 20.02% for 134-day bills
- Investor demand reached N2.7 trillion, significantly exceeding the N600 billion initially offered
Main Story
The Central Bank of Nigeria (CBN) raised approximately N2.67 trillion from investors on Monday after strong demand for its Open Market Operations (OMO) bills pushed stop rates above 20%, underscoring the apex bank’s aggressive liquidity management strategy.
The CBN initially offered N600 billion across two maturities—N300 billion in 99-day bills maturing on September 29, 2026, and another N300 billion in 134-day bills maturing on November 3, 2026. However, total subscriptions surged to N2.7 trillion as investors sought to lock in attractive yields amid elevated interest rates.
Auction results showed that N658 billion was subscribed to the 99-day instrument, while N2.05 trillion chased the 134-day tenor. The apex bank allotted N658 billion for the shorter paper and N2.016 trillion for the longer tenor, rejecting a small portion of bids received.
Stop rates cleared at 20.40% for the 99-day bills and 20.02% for the 134-day instrument, maintaining yields above the 20% threshold that has continued to attract institutional investors.
“The Bank remains committed to maintaining monetary stability and addressing inflationary pressures through appropriate liquidity management measures,” the CBN said in previous monetary policy communications.
The auction comes as the regulator continues efforts to mop up excess liquidity from the banking system in a bid to curb inflationary pressures and support naira stability.
The Issues
The latest OMO auction reflects the CBN’s continued reliance on high-yield instruments to absorb excess liquidity from the financial system. With inflation remaining elevated and liquidity conditions still relatively strong, analysts expect the apex bank to sustain tight monetary conditions through the second half of 2026.
What’s Being Said
“The strong subscription level reflects investors’ preference for risk-free instruments amid prevailing market uncertainties,” analysts at Lagos-based investment firms noted after the auction.
“Yields above 20% continue to provide attractive real-return opportunities for institutional investors,” fixed-income market analysts said.
What’s Next
- Investors will monitor upcoming Treasury Bills and OMO auctions for further rate direction.
- The next Monetary Policy Committee meeting will provide guidance on future liquidity management measures.
- Market participants will watch inflation data closely for signals on interest rate sustainability.
Bottom Line
The Bottom Line: The oversubscription recorded at the OMO auction highlights persistent liquidity in the financial system and investors’ appetite for high-yield government securities. For the CBN, maintaining yields above 20% remains a critical tool in its fight against inflation and excess liquidity.
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