Central Bank of Nigeria mops up N2.5tn in OMO bills

The Central Bank of Nigeria (CBN) has absorbed approximately N2.5 trillion from the financial system through its latest Open Market Operations (OMO) auction. While the apex bank initially targeted N1 trillion in subscriptions across 69-day, 90-day, and 153-day maturities, total demand surged to roughly N3 trillion.

Investors demonstrated a strong preference for longer-duration instruments. The CBN allotted the N2.5 trillion in bills at stop rates below 20%, specifically 19.25% for the 69-day tenor, 19.05% for the 90-day tenor, and 18.39% for the 153-day tenor. This operation is part of the bank's ongoing efforts to manage excess liquidity within the banking sector.

Following the intervention, interbank rates showed signs of tightening. The Nigerian Interbank Offered Rate's overnight rate rose by 2 basis points to 22.20%, while the Open Repo rate remained steady at 22.00%.