The Central Bank of Nigeria (CBN) raised ₦1.92 trillion at its Open Market Operations (OMO) auction held on April 21, 2026, as stop rates climbed to as high as 21.90%, underscoring sustained monetary tightening and strong investor appetite for high-yield instruments.
Auction results released by the apex bank show total subscriptions rose to ₦2.22 trillion—well above the ₦600 billion initially offered—highlighting robust demand amid elevated interest rate conditions.
The 140-day tenor attracted the strongest interest, with subscriptions of ₦1.25 trillion, reflecting investor preference for longer-duration instruments at attractive yields. The 7-day bill followed with ₦884 billion in subscriptions, while the 91-day tenor recorded comparatively weaker demand at ₦87 billion.
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In terms of allotments, the CBN sold ₦1.21 trillion in 140-day bills, ₦684 billion in 7-day bills, and ₦21 billion in 91-day bills, bringing total sales to ₦1.92 trillion.
Rates reflect a tight liquidity stance
Stop rates cleared at 21.90% for the 7-day tenor, 19.87% for the 91-day bill, and 19.91% for the 140-day instrument—levels that point to persistently tight liquidity conditions and elevated short-term interest rates.
The scale of allotment—more than three times the initial offer—signals an aggressive liquidity mop-up by the CBN. This comes alongside the repayment of about ₦2.16 trillion in maturing primary market instruments on the same day.
Earlier, the apex bank had also repaid ₦92.8 billion in Treasury bills and FGN bond maturities between April 15 and April 17. With total repayments estimated at ₦2.25 trillion and net OMO sales at ₦1.92 trillion, roughly ₦330 billion remained in the financial system.
Liquidity tightening and market implications
The heavy issuance of OMO bills reinforces the CBN’s strategy to absorb excess liquidity and sustain upward pressure on short-term rates, as part of efforts to curb inflationary pressures.
Strong demand for the 140-day tenor, in particular, suggests that investors are positioning for continued high yields in the near term.
While the stop rate of 21.90% on the 7-day bill represents the highest among the offered tenors, it does not translate directly to total interest paid on the full ₦684 billion allotment. Interest is calculated on a prorated basis using a 364-day convention.
Market estimates indicate that interest on the 7-day bill would amount to approximately ₦2.88 billion, with similar prorated calculations applied to the 91-day and 140-day instruments.
Overall, the intensified use of OMO instruments highlights the apex bank’s commitment to tight monetary conditions. However, persistently high yields may elevate borrowing costs, with broader implications for debt sustainability and economic activity.
