CBN offers N2.5 trillion in fresh OMO auction as N2.43 trillion repayment hits market

The Central Bank of Nigeria (CBN) is set to conduct a N2.5 trillion Open Market Operations (OMO) auction on September 29, 2026, to coincide with a N2.433 trillion repayment of OMO instruments maturing on the same date. This offers a near one-to-one match between the fresh supply and the liquidity injection required. The auction will feature three tenors: N500 billion in 147-day paper maturing on February 23, 2027, N1 trillion in 182-day paper maturing on March 30, 2027, and N1 trillion in 266-day paper maturing on June 22, 2027.

The CBN expects bidding to conclude at 10:30 a.m. Banks are already holding more than N6.2 trillion at the Standing Deposit Facility (SDF), creating the conditions for an additional major liquidity sterilisation operation by the apex bank. The N2.5 trillion offer is almost identical to the repayment amount, with only a N66.765 billion difference.

This auction follows a month of strong investor demand for OMO instruments, with the CBN offering a total of N3.9 trillion across four auctions in September and mopping up N4.72 trillion through OMO sales in August. The CBN reduced the Monetary Policy Rate by 350 basis points to 23% at its meeting on September 22, aiming to close the gap between its benchmark rate and money-market conditions.

The final allotment and stop rate on the 266-day instrument will determine how much of the N2.433 trillion repayment is absorbed and the price investors are willing to accept for locking up liquidity further into 2027.