The Central Bank of Nigeria (CBN) is providing N2 trillion in Open Market Operations (OMO) bills on Thursday, October 22, 2026, as banking system liquidity stays elevated following substantial securities repayments.
According to the CBN’s public sale discover, the supply contains N1 trillion every of 138-day and 180-day bills, with bidding scheduled between 1:00 p.m. and 1:30 p.m at this time.
The public sale comes after banks’ internet placements at the CBN’s Standing Deposit Facility exceeded N6 trillion earlier in October, whereas the Financial Markets Dealers Association (FMDA) projected N2.067 trillion in OMO maturities for the week.
CBN splits N2 trillion OMO supply:
The CBN’s newest OMO public sale offers two maturities, with equal quantities allotted to the 138-day and 180-day devices. The shorter invoice matures on March 9, 2027, whereas the longer invoice matures on April 20, 2027.
The N2 trillion supply represents roughly 96.8% of the N2.067 trillion in OMO maturities projected by FMDA for the week starting October 19.
- The 138-day OMO invoice has a suggestion dimension of N1 trillion.
- The 180-day OMO invoice additionally has a suggestion dimension of N1 trillion.
- Bidding is scheduled to run from 1:00 p.m. to 1:30 p.m. on Thursday.
- The distinction between the supply and projected weekly OMO maturities is roughly N67 billion.
- The proximity of the 2 figures means that the public sale may take up a part of the liquidity returning to the monetary system by maturing securities.
- However, the discover doesn’t set up that the CBN intends to interchange these maturities on a one-for-one foundation.
It additionally doesn’t specify cease charges, subscriptions or allotments, which is able to solely turn into recognized when the public sale outcomes can be found.
Consequently, the quantity of liquidity withdrawn will depend upon the amount of bills ultimately allotted relatively than the introduced supply alone.
OMO Repayments increase banking liquidity:
The public sale follows a interval of considerable liquidity releases from maturing OMO securities. Banks’ internet placements at the CBN’s Standing Deposit Facility rose above N6 trillion after an OMO reimbursement of roughly N2.41 trillion on October 13.
According to Nairametrics’ evaluation of CBN information, these placements remained above N6 trillion by October 16.
- FMDA reported that banking system liquidity elevated by 69.39% to N6.283 trillion within the week ended October 16.
- The enhance was from N3.709 trillion within the previous week.
- OMO repayments contributed to the liquidity growth, with no recent OMO gross sales recorded through the overview week.
- At the October 6 OMO public sale, the CBN allotted roughly N3.31 trillion in opposition to an preliminary supply of N2 trillion and subscriptions of N3.51 trillion.
- The October 6 allotment exceeded the introduced supply and was roughly N1.14 trillion larger than the N2.17 trillion in maturities recorded round that public sale.
- The 182-day invoice accounted for about 80.7% of the overall allotment, indicating stronger demand for the longer instrument.
Stop charges settled at 17.22% for the 147-day invoice and 16.92% for the 182-day invoice, each under the charges recorded at the September 29 public sale.
The CBN additionally bought roughly N17.51 trillion in OMO bills throughout September in opposition to N10.89 trillion in maturities, representing a internet liquidity withdrawal of about N6.62 trillion.
OMO allotments decide liquidity influence:
The October 22 public sale will present one other indication of how aggressively the CBN intends to soak up liquidity from the banking system. Although the supply is N2 trillion, current auctions present that the ultimate allotment will be considerably larger.
The outcomes can even point out whether or not buyers proceed to favour longer-dated OMO devices and whether or not accepted yields keep their current downward development.
- At the October 6 public sale, the CBN allotted roughly 1.65 instances its unique N2 trillion supply.
- The newest 138-day and 180-day bills are shut in tenor to the devices supplied on October 6.
- The earlier cease charges of 17.22% and 16.92% present a reference for assessing modifications in accepted yields.
- September’s OMO subscriptions reached roughly N20.6 trillion, the best reported for 2026.
- OMO bills can be found to eligible market contributors below CBN guidelines and aren’t supplied on to bizarre retail buyers.
- The CBN’s discover doesn’t present a particular clarification for the newest public sale past its position in routine liquidity administration.
A bigger allotment may take up extra liquidity than the projected weekly maturities, whereas a smaller allotment may depart extra funds throughout the banking system. The closing subscription figures, cease charges and allotment volumes will due to this fact decide whether or not the public sale primarily offsets maturing securities or ends in a further internet liquidity withdrawal.
