The Central Bank of Nigeria (CBN) withdrew a net N6.62 trillion from the banking system through Open Market Operations (OMO) in September 2026, as the apex bank stepped up liquidity management amid strong investor demand for its securities.
The CBN sold about N17.51 trillion worth of OMO bills during the month, while N10.89 trillion in maturing instruments was repaid to investors, effectively returning part of the liquidity earlier absorbed. The net result was a N6.62 trillion reduction in system liquidity.
The transactions were conducted through five auctions held on September 1, 8, 16, 24 and 29. The N17.51 trillion allotted was about 2.7 times the N6.4 trillion initially offered, highlighting strong appetite for CBN securities despite changes in yields.
The September maturities included N62 billion repaid on September 7, N3.07 trillion on September 8, N3.06 trillion on September 15, N2.27 trillion on September 22 and N2.43 trillion on September 29.
The CBN’s September OMO activity therefore largely reflected the recycling of maturing securities into fresh instruments, rather than a corresponding N17.51 trillion withdrawal of new liquidity from the financial system.
The largest net withdrawal occurred around the September 1 auction and subsequent maturity, when about N2.82 trillion was absorbed. Another N2.25 trillion was withdrawn around the September 29 auction, when the CBN sold N4.69 trillion against N2.43 trillion in maturities.
Earlier September auctions had also attracted substantial investor demand, with investors submitting N20.58 trillion in bids against N3.9 trillion offered across four auctions, underscoring strong appetite for CBN securities even as OMO rates declined.
Nairametric
