The Central Bank of Nigeria (CBN) has successfully raised ₦2.2 trillion through the sale of Open Market Operation (OMO) bills, a strategic move aimed at mopping up excess liquidity within the financial system and refinancing maturing obligations.
This intervention comes as the banking system opened the week in a robust surplus position of ₦4.97 trillion, bolstered by significant inflows from repayments and placements at the central bank’s standing facilities.
During the auction conducted on Tuesday, the apex bank initially offered ₦600 billion worth of debt instruments to deposit money banks and foreign portfolio investors.
The offer was structured across three tenors, specifically 7-day, 63-day, and 140-day maturities.
However, the auction witnessed overwhelming demand as investors, drawn by elevated yields, submitted total subscriptions amounting to ₦2.6 trillion.
In response to this strong investor appetite, the CBN significantly increased its allotment, eventually issuing ₦2.2 trillion in total.
The longest-dated papers were fully subscribed, with stop rates clearing at 21.90%, 19.88%, and 19.91% for the respective tenors.
Market analysts at AIICO Capital noted that this aggressive liquidity withdrawal underscores the central bank’s ongoing commitment to using orthodox monetary policy tools to manage money supply and stabilize the broader economy.