CBN mops up N4.72 trillion via OMO sales in two days as investors chase near-20% yields
The Central Bank of Nigeria (CBN) withdrew a combined N4.72 trillion from the banking system through four Open Market Operations (OMO) auctions conducted between August 26 and 27, 2026, with the shorter tenor paper yielding close to 20%. The post CBN mops up N4.72 trillion via OMO sales in two days as investors chase near-20% yields appeared first on Nairametrics .
The Central Bank of Nigeria (CBN) swiftly removed a combined N4.72 trillion from the banking system via four Open Market Operations (OMO) auctions spanning August 26-27, 2026. The shorter tenor paper yielded near-20%, attracting a record N8.62 trillion in investor subscriptions, nearly four times the offered amount.
Four auctions, ranging in tenors of 96, 97, 132 and 152 days, contributed N2.0 trillion to the CBN's reserves. The longer-dated N132- and N152-day assets accounted for 84% of demand, drawing N6.77 trillion in subscriptions and N3.95 trillion in allotments, respectively.
The 152-day instrument, with the lowest yield at 19.32%, versus the higher 19.85% and 19.90% for the 96- and 97-day bills, illustrated investors' willingness to accept lower yields for longer tenors. Despite the aggressive OMO mop-up, the banking system remained highly liquid, with increasing balances throughout the two-day window.
With a net liquidity injection of N3.539 trillion from maturing government securities, the CBN's aggressive sterilization strategy was set to continue, particularly with upcoming auctions.
Written by urgent.news from Nairametrics's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
