MARKET NEWS
CBN’s first OMO auctions of 2026 rake in N2.73tn subscriptions - DAILY TRUST
By Philip Shimnom Clement
The Central Bank of Nigeria (CBN) opened the 2026 monetary year with strong investor appetite at its first Open Market Operations (OMO) auctions, recording total subscriptions of N2.727 trillion across medium-term maturities.
The robust demand underscores the apex bank’s continued tight liquidity stance, with stop rates clustering between 19.34 per cent and 19.40 per cent, signalling limited appetite for early easing of monetary conditions.
OMO is when a central bank buys or sells government securities (like bonds) in the open market to manage the money supply, control interest rates, and influence economic activity like inflation and growth.
At the January 6, 2026 auction, demand was heavily concentrated at the longer end of the curve.
The 210-day OMO bill attracted a massive N2.451 trillion in bids, dwarfing the N277 billion recorded for the shorter 161-day tenor.
Despite the strong interest, the CBN maintained a selective allotment strategy. While N259 billion was allotted for the 161-day paper, the 210-day instrument was fully allotted at N245.08 billion, indicating the central bank’s preference to lock in liquidity over a longer period. The 210-day paper matures on August 4, 2026, while the 161-day bill matures on June 16, 2026. Each tenor was offered at N300 billion.
Stop (marginal) rates settled at 19.34 per cent for the 161-day bill and 19.40 per cent for the 210-day bill, broadly in line with late-December 2025 outcomes, when rates ranged between 19.35 per cent and 19.41 per cent.
The marginal rate represents the highest accepted yield at which the total amount offered is fully allotted and serves as the clearing rate for the auction, while successful bid rates may vary depending on individual submissions.
The persistence of near-20 per cent OMO yields reflects the CBN’s sustained focus on inflation containment and exchange rate stability, even as concerns over economic growth persist.
Data from previous auctions point to a cautious and tactical liquidity management approach. At the December 30, 2025 auctions, the 168-day OMO attracted N121 billion in bids but saw only N75 billion allotted, while the 210-day paper recorded N119.35 billion in successful bids out of N121.45 billion subscribed.
By contrast, the full allotment of the longer tenor at the January 2026 auction reinforces the CBN’s bias toward absorbing liquidity over extended horizons rather than relying heavily on short-dated instruments. Across the auctions, net sales of N300 billion per offer highlight a consistent and deliberate liquidity withdrawal strategy.
