The Central Bank of Nigeria (CBN) demonstrated strong investor interest in September 2026, allotting approximately N12.823 trillion across four Open Market Operations (OMO) auctions. Investors submitted a staggering N20.58 trillion in bids, far surpassing the N3.9 trillion offered.
Analysis of the auctions held on September 1, 8, 16, and 24 revealed a consistent demand, with subscriptions hitting 5.28 times the offered amount. Notably, the September 8 auction recorded the highest demand of the month, with N6.306 trillion in subscriptions against N1 trillion offered.
Throughout September, the CBN observed a significant drop in stop rates, particularly for longer-tenor instruments, which fell by 170 basis points by the end of the month. This decline coincided with the Monetary Policy Committee's decision to reduce the benchmark rate by 350 basis points to 23% on September 22.
Despite the decreasing rates, investor appetite remained strong, as evidenced by the N20.58 trillion in OMO subscriptions, marking the highest level recorded in 2026. The CBN's strategy of enhancing liquidity access for various investors contributed to this robust demand.
As the CBN continues its liquidity mop-up efforts, upcoming OMO and NTB auctions will be closely watched to see if the lower-rate environment affects investor interest in these instruments.