The Central Bank of Nigeria (CBN) injected an estimated N3.20 trillion into the banking system in October 2026, after repayments on maturing securities outpaced the funds raised through fresh debt auctions.
Data on the CBN’s Open Market Operations (OMO) and Nigerian Treasury Bills (NTBs) show that N10.69 trillion was returned to investors during the month, while new allotments totalled N7.49 trillion. That means fresh issuance replaced only about 70% of maturing obligations.
What drove the surplus
The CBN held three OMO auctions and three Treasury Bills auctions in October. Investors submitted N13.23 trillion in bids, but the bank allotted only about 57% of that demand.
OMO auctions raised N6.18 trillion against N6.71 trillion in identified maturities, leaving a N527 billion repayment surplus. Treasury Bills raised N1.31 trillion against N3.985 trillion in repayments, producing a larger N2.68 trillion gap.
The October 28 Treasury Bills auction was particularly selective: only N71.16 billion was allotted from N1.908 trillion in subscriptions, leaving roughly 96% of bids unfilled.
Yields decline, deposits rise
The slower issuance coincided with rising placements at the CBN’s Standing Deposit Facility (SDF) and lower short-term yields. SDF balances peaked at N8.41 trillion on October 28, before easing to N7.63 trillion the next day and N7.19 trillion on October 30.
The 138-day OMO stop rate fell to 17.63% on October 22, from 20.01% for a comparable tenor on August 13—a 238-basis-point decline. The 364-day Treasury Bill stop rate also dropped to 15.80% on October 28.
The development followed the Monetary Policy Committee’s September decision to cut the Monetary Policy Rate to 23%.
Experts differ on impact
Aruna Kebira, CEO of Globalview Capital, said the higher repayments were positive because they reduced the CBN’s outstanding obligations. He also suggested the liquidity support may have been partly intended to offset funds committed to the heavily subscribed Dangote Refinery public offer.
However, Olubunmi Ayokunle of Agusto & Co cautioned that OMO repayments do not necessarily translate into equivalent domestic liquidity, since many OMO holders are foreign investors. He added that IPO subscriptions largely move money between bank accounts rather than removing it from the financial system.
The N3.20 trillion figure is therefore a repayment surplus, not a complete measure of liquidity creation. Government spending, foreign-exchange operations, currency movements and other transactions can also affect banks’ actual liquidity position.
