CBN offers OMO bills from N2trn while liquidity reaches N6.3trn

The Central Bank of Nigeria (CBN) will offer $2 trillion in securities for open market operations (OMO) on Thursday as it steps up efforts to manage excess liquidity in the banking system following substantial redemptions on maturing securities.

The auction, scheduled for October 22, 2026, includes $1 trillion each in 138-day and 180-day notes, according to the apex bank’s notice. The auction was scheduled to take place between 1pm and 1.30pm

The move comes amid growing liquidity in the financial system, with banks’ net placements at the CBN’s Standing Deposit Facility surpassing $6 trillion earlier this month.

The Financial Markets Dealers Association (FMDA) also forecast N2.067 trillion in OMO maturities for the week, placing the figure about N67 billion above the latest auction bid.

The 138-day bill is scheduled to expire on March 9, 2027, while the 180-day bill expires on April 20, 2027.

While the auction could absorb some of the funds returning to the banking system through maturing securities, the actual impact on liquidity will depend on the volume of securities eventually allocated by the CBN.

Data reported by the FMDA showed that banking system liquidity increased by 69.39 per cent to N6.283 trillion in the week ended October 16, from N3.709 trillion in the previous week.

The increase followed substantial redemptions on maturing OMO securities, including about N2.41 trillion paid on October 13. Banks’ net placements at the CBN’s Standing Deposit Facility subsequently surpassed N6 trillion and remained above that level until October 16.

The latest auction follows the CBN’s October 6 exercise, when it allocated about N3.31 trillion against an initial offering of N2 trillion, following subscriptions of N3.51 trillion.