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 provide includes N1 trillion every of 138-day and 180-day bills, with bidding scheduled between 1:00 p.m. and 1:30 p.m at the moment.
The public sale comes after banks’ web 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 provide:
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 provide 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 provide 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 means of maturing securities.
- However, the discover doesn’t set up that the CBN intends to exchange these maturities on a one-for-one foundation.
It additionally doesn’t specify cease charges, subscriptions or allotments, which can solely turn out to be identified when the public sale outcomes can be found.
Consequently, the quantity of liquidity withdrawn will depend upon the amount of bills finally allotted quite than the introduced provide alone.
OMO Repayments enhance banking liquidity:
The public sale follows a interval of considerable liquidity releases from maturing OMO securities. Banks’ web placements at the CBN’s Standing Deposit Facility rose above N6 trillion after an OMO compensation of roughly N2.41 trillion on October 13.
According to Nairametrics’ analysis of CBN data, these placements remained above N6 trillion by means of October 16.
- FMDA reported that banking system liquidity increased 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 contemporary OMO gross sales recorded throughout the evaluate week.
- At the October 6 OMO public sale, the CBN allotted roughly N3.31 trillion towards an preliminary provide of N2 trillion and subscriptions of N3.51 trillion.
- The October 6 allotment exceeded the introduced provide and was roughly N1.14 trillion increased 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 towards N10.89 trillion in maturities, representing a web liquidity withdrawal of about N6.62 trillion.
OMO allotments decide liquidity affect:
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 provide is N2 trillion, current auctions present that the ultimate allotment could be considerably increased.
The outcomes may also point out whether or not traders 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 authentic N2 trillion provide.
- 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 beneath CBN guidelines and usually are not supplied on to strange retail traders.
- The CBN’s discover doesn’t present a particular rationalization for the newest public sale past its function in routine liquidity administration.
A bigger allotment may take up extra liquidity than the projected weekly maturities, whereas a smaller allotment may go away extra funds throughout the banking system. The ultimate 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 an extra web liquidity withdrawal.
