The Central Bank of Nigeria (CBN) has injected an estimated N447 billion into the banking system after repaying nearly N2.99 trillion in maturing Open Market Operations (OMO) bills, despite conducting fresh auctions that absorbed over N2.5 trillion from investors.
Latest financial market data showed that the apex bank redeemed N2.97 trillion in OMO bills on Tuesday, a day after it conducted an OMO auction in which it allotted N2.54 trillion across three tenors, far above the initial offer size of N600 billion. The CBN also settled N17.05 billion in primary market repayments, bringing total repayments between Monday and Tuesday to N2.987 trillion.
The repayments exceeded the amount sterilised through the fresh OMO sale by about N447 billion, resulting in a net liquidity injection into the banking sector despite the central bank’s continued efforts to manage excess liquidity.
Market analysts said the development reflects the CBN’s balancing strategy of containing inflationary pressures while ensuring adequate liquidity remains within the financial system.
The auction attracted strong investor interest, with the apex bank accepting subscriptions significantly above its advertised offer, underscoring sustained demand for high-yield government securities amid the prevailing monetary policy environment.
The repayment comes as the CBN continues to rely on OMO instruments to regulate money supply and influence short-term interest rates. Recent OMO auctions have consistently recorded robust oversubscription, driven largely by institutional investors seeking attractive returns on risk-free assets.
The latest operation also follows the CBN’s broader liquidity management strategy, which includes an ambitious Treasury Bills issuance programme for the third quarter of 2026 aimed at withdrawing excess liquidity from the banking system while supporting its inflation-control objectives.
