The Central Bank of Nigeria (CBN) has offered N2tn worth of Open Market Operations (OMO) bills to mop up excess liquidity from the banking system, following a 69.39 per cent surge in surplus funds to N6.283tn.
Data from the Financial Markets Dealers Association (FMDA) showed that banking system liquidity rose from N3.709tn in the preceding week to N6.283tn in the week ended October 16, 2026.
The CBN scheduled the auction for Thursday, October 22, offering N1tn each in 138-day and 180-day bills as part of efforts to manage excess cash in the financial system.
The increase in liquidity followed repayments on maturing securities, including about N2.41tn in OMO bills that matured on October 13. Meanwhile, OMO bills worth N2.067tn were projected to mature during the week beginning October 19.
The CBN’s latest offer represents about 96.8 per cent of the projected maturities, although the actual amount withdrawn will depend on subscriptions and the final allotment.
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The 138-day bills are scheduled to mature on March 9, 2027, while the 180-day instruments will mature on April 20, 2027.
The latest auction follows the CBN’s October 6 exercise, where it allotted about N3.31tn against an initial offer of N2tn, after subscriptions reached N3.51tn.
At that auction, the bank accepted yields of 17.22 per cent on 147-day bills and 16.92 per cent on 182-day instruments, both lower than the rates recorded on September 29.
In September, the apex bank sold N17.51tn in OMO bills against maturities of N10.89tn, resulting in a net liquidity withdrawal of approximately N6.62tn.
Market participants are expected to monitor the latest auction for indications of investor demand and the direction of yields.
The final impact on banking liquidity will depend on the amount allotted, maturing securities and other financial flows during the period.
