The Central Bank of Nigeria (CBN) conducted a remarkable Open Market Operations (OMO) auction on September 29, 2026, selling approximately N4.686 trillion in bills. This amount is nearly double the N2.5 trillion initially offered and almost twice the N2.433 trillion maturing on the same day.
Investor interest was robust, with total bids reaching N6.399 trillion across three instruments. The newly introduced 266-day instrument was particularly popular, drawing in N4.543 trillion in subscriptions, which was 4.54 times the amount offered.
The auction included N500 billion in 147-day paper, N1 trillion in 182-day paper, and N1 trillion in 266-day paper. Successful allotments exceeded the initial offers, leading to a significant liquidity withdrawal from the banking system.
Overall, the CBN's actions resulted in a net liquidity absorption of approximately N2.253 trillion beyond the same-day OMO maturity, indicating a tightening of liquidity in the market. September's total OMO sales have now reached an impressive N17.5 trillion, showcasing strong investor demand throughout the month.
As the CBN navigates its liquidity strategy, investors are keenly observing whether the bank will continue this trend into October, especially following a recent reduction in the Monetary Policy Rate.