Central Bank of Nigeria (CBN) has withdrawn about N3.31 trillion from the banking system through October 6, 2026 Open Market Operations (OMO) auction,
moving to absorb excess liquidity after N2.17 trillion in maturing securities flowed back into the financial system.
The latest intervention came amid elevated liquidity in the banking system, which rose to about N7.09 trillion, from N5.05 trillion previously, following the repayment of the maturing OMO bills.
The CBN had offered N2 trillion worth of OMO bills with maturities of 147 and 182 days. However, strong investor demand pushed total subscriptions to approximately N3.5 trillion, allowing the apex bank to allot N3.31 trillion.
The 147-day instrument attracted an allotment of N637.2 billion, while the longer-dated 182-day bill accounted for about N2.7 trillion.
The stop rates settled at 17.22 per cent for the 147-day bill and 16.92 per cent for the 182-day instrument, reflecting continued investor demand for naira-denominated fixed-income assets.
The latest operation highlights the CBN’s continued reliance on OMO auctions to manage liquidity and prevent excess funds in the banking system from putting additional pressure on inflation and other financial-market variables.
Despite the fresh withdrawal, banks continued to hold substantial funds with the CBN through the Standing Deposit Facility (SDF), with placements reported at about N4.70 trillion.
The development also comes against the backdrop of the CBN’s broader efforts to actively manage liquidity through repeated OMO sales. In September alone, the apex bank allotted about N17.51 trillion in OMO bills, while N10.89 trillion was returned to investors through maturing securities, resulting in a net liquidity withdrawal of roughly N6.62 trillion for the month.
The latest move therefore suggests that the CBN is seeking to sterilise liquidity entering the financial system from maturing instruments while maintaining tighter monetary conditions.
