May 15, (THEWILL) — The Central Bank of Nigeria (CBN) recorded a massive N5.63 trillion in Open Market Operations (OMO) sales within two weeks, underscoring sustained investor appetite for high-yield fixed-income instruments amid aggressive liquidity tightening by the apex bank.
Analysis of the auctions conducted between May 4 and May 12, 2026, shows the CBN offered a total of N1.8 trillion across eight instruments but ended up allotting more than three times that amount due to overwhelming demand from investors.
Across the three auction sessions held on May 4, May 7, and May 12, the apex bank consistently offered N600 billion per session, yet subscriptions far exceeded expectations.
At the May 4 auction, the 8-day bill attracted N1.07 trillion in subscriptions and was fully allotted at a stop rate of 21.90 percent, while the 134-day instrument drew N640.1 billion in bids, with N630.1 billion allotted at 19.97 percent.
Total allotment for the session stood at N1.7 trillion.
The May 7 auction recorded combined allotments of N1.60 trillion, led by the 96-day bill, which attracted N923.17 billion in subscriptions and secured N893.17 billion in allotments at 20.45 percent.
However, the standout performance came during the May 12 auction, where the 126-day bill emerged as the most sought-after instrument.
Although the CBN initially offered N200 billion, the bill recorded a remarkable N1.454 trillion in allotments at a stop rate of 20.10 percent , highlighting strong institutional preference for longer-dated securities.
In contrast, the 35-day bill saw heavy rationing. Despite attracting N761 billion in subscriptions, only N25 billion was allotted, signalling deliberate CBN restraint on short-term borrowing costs.
Despite the aggressive liquidity mop-up, the banking system remained awash with cash.
The CBN repaid N4.78 trillion in maturing OMO bills during the period, leaving a net liquidity withdrawal of about N850 billion.
The auctions reinforce the CBN’s tight monetary stance in 2026, as the regulator intensifies efforts to curb inflation and absorb excess liquidity ahead of rising fiscal and election-related spending pressures.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
