The Central Bank of Nigeria (CBN) sold ₦853.75 billion worth of Open Market Operation (OMO) bills to investors at Tuesday’s primary market auction, above the ₦600 billion it had initially offered.
The exercise formed part of the apex bank’s effort to refinance maturing OMO obligations and reduce excess liquidity within the banking system, where lenders continue to maintain large balances at the Standing Deposit Facility.
At the auction, the CBN offered instruments across 70-day and 140-day tenors, which cleared at stop rates of 19.90 per cent and 19.92 per cent, respectively. Investor demand remained strong, with total subscriptions climbing to ₦1.3 trillion, indicating sustained appetite for short-term fixed-income securities amid elevated yields.
The development comes as ₦1.02 trillion in OMO bills is due to mature, underlining the liquidity management pressures facing the central bank. Market analysts believe the CBN will likely continue to deploy OMO auctions as a key tool for mopping up surplus liquidity and supporting interest rate stability as the quarter draws to a close.
