Spread the word
The Central Bank of Nigeria (CBN) is offering N2 trillion in Open Market Operations (OMO) bills on Thursday as it steps up efforts to manage excess liquidity in the banking system following substantial repayments on maturing securities.
The auction, scheduled for October 22, 2026, comprises N1 trillion each in 138-day and 180-day bills, according to the apex bank’s notice. Bidding was scheduled to take place between 1:00 p.m. and 1:30 p.m.
The move comes amid rising liquidity in the financial system, with banks’ net placements at the CBN’s Standing Deposit Facility exceeding N6 trillion earlier this month.
The Financial Markets Dealers Association (FMDA) also projected N2.067 trillion in OMO maturities for the week, putting the figure approximately N67 billion above the latest auction offer.
The 138-day bill is scheduled to mature on March 9, 2027, while the 180-day instrument will mature on April 20, 2027.
Although the auction could absorb some of the funds returning to the banking system through maturing securities, the actual impact on liquidity will depend on the volume of bills eventually allotted by the CBN.
Data reported by the FMDA showed that banking system liquidity increased by 69.39 per cent to N6.283 trillion in the week ended October 16, from N3.709 trillion in the preceding week.
The increase followed substantial repayments on maturing OMO securities, including approximately N2.41 trillion paid on October 13. Banks’ net placements at the CBN’s Standing Deposit Facility subsequently exceeded N6 trillion and remained above that level through October 16.
The latest auction follows the CBN’s October 6 exercise, when it allotted approximately N3.31 trillion against an initial offer of N2 trillion, following subscriptions of N3.51 trillion.
Spread the word