The Central Bank of Nigeria (CBN) has announced a N2.5 trillion Open Market Operations (OMO) auction scheduled for September 29, 2026. This auction coincides with the maturity of a N2.433 trillion OMO repayment, creating a nearly one-for-one match between the new offer and liquidity injection.
The auction will feature three tenors: N500 billion in 147-day paper maturing on February 23, 2027; N1 trillion in 182-day paper maturing on March 30, 2027; and N1 trillion in 266-day paper maturing on June 22, 2027. This structure aims to address the substantial liquidity in the banking system.
As of September 29, banks held over N6.2 trillion at the Standing Deposit Facility (SDF), highlighting the need for effective liquidity management by the CBN. The new OMO offer is closely aligned with the repayment due, differing by just N66.765 billion.
September has seen a surge in investor interest, with total bids across four auctions reaching N20.58 trillion, significantly exceeding the cumulative N3.9 trillion offered. This trend reflects the CBN's strategy to broaden access to OMO instruments, attracting more participants from various sectors.
The upcoming auction follows a recent cut in the Monetary Policy Rate, indicating a strategic adjustment by the CBN to align its policies with market conditions. The success of this auction will depend on investor acceptance of the rates offered, particularly for the new 266-day instrument.