The Central Bank of Nigeria (CBN) on Tuesday declined to allot any portion of the ₦4.9 trillion submitted by eligible investors at its Open Market Operations (OMO) auction, underscoring the depth of excess liquidity currently circulating within the Nigerian financial system.
The apex bank had offered ₦600 billion worth of OMO bills across two tenors, primarily aimed at refinancing maturities amounting to ₦2.14 trillion scheduled for repayment. However, despite strong demand from market participants, the CBN opted not to accept any bids at the auction.
Market analysts had earlier projected robust participation, citing prevailing liquidity conditions that placed the money market in a net long position of approximately ₦4 trillion. Expectations were that the offer would attract substantial interest, especially as institutional investors sought yield opportunities amid limited high-quality instruments.
Data from investment firms confirmed that although total subscriptions surged to ₦4.9 trillion, the auction concluded without a single allotment. This move effectively left excess liquidity untouched, further reinforcing short-term market depth.
Meanwhile, activity in the Nigerian Treasury Bills secondary market showed mixed price action. Yields on the 1-month, 6-month, and 12-month tenors declined by 9 basis points, 9 basis points, and 4 basis points respectively, reflecting sustained demand. In contrast, the 3-month tenor edged higher by 2 basis points.
Overall, the average yield across Nigerian Treasury bills eased by 1 basis point to settle at 18.46%. Analysts interpret the moderation in yields as a sign of improving investor confidence and a relatively supportive trading environment, even as liquidity pressures persist.
 on Tuesday declined to allot any portion of the ₦4.9 trillion submitted by eligible investors at its Open Market Operations (OMO) auction, underscoring the depth of excess liquidity currently circulating within the Nigerian financial system.){kind=link}