CBN attracts ₦2.7trn in first 2026 OMO auction as tight liquidity stance persists

The Central Bank of Nigeria (CBN) opened the 2026 monetary year with strong investor appetite at its first Open Market Operations (OMO) auctions, attracting total subscriptions of ₦2.727 trillion across medium-term maturities.

The outcome of the January 6, 2026, auction reinforced the apex bank’s tight liquidity posture, with stop rates clustered between 19.34 per cent and 19.40 per cent, signalling limited room for any near-term easing of monetary conditions.

Demand at the auction was heavily skewed toward the longer end of the yield curve. The 210-day OMO bill drew subscriptions of ₦2.45 trillion, dwarfing interest in the shorter 161-day instrument, which recorded ₦277 billion in bids. 

The CBN fully allotted the longer-dated paper, which matures in August 2026, reflecting a clear preference to mop up liquidity over an extended period.

Under the auction, the CBN offered ₦300 billion per tenor. Successful bids amounted to ₦259 billion for the 161-day bill, which matures on June 16, 2026, while the 210-day paper recorded full allotment at ₦245.08 billion. 

Marginal rates settled at 19.34 per cent for the 161-day instrument and 19.40 per cent for the 210-day paper, broadly in line with the late-December 2025 OMO auction outcomes, where stop rates ranged between 19.35 per cent and 19.41 per cent.

The marginal, or stop, rate represents the highest accepted yield at which the total amount offered is fully allotted, effectively setting the clearing yield for the auction. This differs from successful bid rates, which reflect individual yields submitted by winning bidders.

The persistence of near-20 per cent OMO yields underscores the CBN’s continued focus on curbing inflation and supporting exchange-rate stability, even as concerns about economic growth remain.

While investor demand has been robust, allotments have remained selective. At the December 30, 2025, auction, the 168-day OMO attracted ₦121 billion in subscriptions but saw only ₦75 billion allotted, while the 210-day paper recorded ₦119.35 billion in successful bids out of ₦121.45 billion subscribed.

In contrast, the full allotment of the longer-dated paper at the January 2026 auction highlights the central bank’s bias toward locking up liquidity at the longer end of the curve rather than relying on short-dated instruments. 

Across the four most recent auctions referenced, net sales stood at ₦300 billion per offer, pointing to a consistent and deliberate liquidity withdrawal strategy by the CBN.