The Central Bank of Nigeria (CBN) rejected over 97% of bids worth ₦4.1 trillion in its latest open market operation (OMO) auction, signaling a tighter monetary stance aimed at curbing liquidity pressure.
The apex bank had offered ₦600 billion in OMO bills to mop up excess cash from the financial system following a period of elevated liquidity caused by its absence from the market.
Data from Monday’s auction showed the offer was spread across short-term maturities of 85, 99, and 120 days.
Despite the modest offer, investor enthusiasm remained robust, as foreign portfolio investors and local deposit money banks oversubscribed the issuance by nearly sevenfold, reflecting strong appetite for Nigeria’s high-yield naira assets.
Ultimately, the CBN allotted ₦998.1 billion at an average stop rate of 20.1%, maintaining one of the highest short-term yields in emerging markets.
The move underscores its determination to tighten monetary conditions and stabilize the naira amid persistent inflationary pressures.
In the secondary market, demand for OMO bills intensified as investors sought to boost their holdings.
This renewed buying interest compressed the average yield in the OMO segment by three basis points to 20.5%, reflecting sustained confidence in short-term government instruments.
