The Central Bank of Nigeria (CBN) opened the 2026 financial 12 months with sturdy investor demand at its first set of Open Market Operations (OMO) auctions, pulling in complete subscriptions of N2.727 trillion throughout medium-term maturities.
The auctions bolstered the apex bank’s tight liquidity stance, with cease charges clustering between 19.34% and 19.41%, signalling little urge for food for early easing of financial circumstances.
At the January 6, 2026, OMO public sale, demand was overwhelmingly skewed towards the longer finish of the curve. The 210-day OMO invoice attracted N2.45 trillion in subscriptions, far exceeding curiosity within the shorter 161-day tenor, which recorded N277 billion in bids.
The CBN absolutely allotted the longer-dated paper, indicating a transparent desire to soak up liquidity for an prolonged interval, with the instrument maturing in August 2026.
Spotlight of January 6, 2026, OMO Auctions
Tenors of supply:
Maturity dates:
- 161-day: 16 June 2026
- 210-day: 4 August 2026
Provide quantity: N300 billion (per tenor)
Subscriptions:
- 161-day: N277.0 billion
- 210-day: N2.451 trillion
Complete subscriptions: N2.727 trillion
Allotments (profitable bids):
- 161-day: N259.0 billion
- 210-day: N245.08 billion (absolutely allotted)
Cease (marginal) charges:
- 161-day: 19.34%
- 210-day: 19.40%
Cease charges stay elevated as CBN holds the road on yields
Marginal charges on the January public sale settled at 19.34% for the 161-day paper and 19.40% for the 210-day paper, broadly in keeping with outcomes from the late-December 2025 OMO auctions, the place cease charges ranged between 19.35% and 19.41%.
The marginal price, also referred to as the cease price, represents the very best accepted yield at which the full quantity supplied is absolutely allotted, setting the clearing yield for the public sale.
This differs from profitable bid charges, which replicate the person yields submitted by successful bidders and should differ relying on the public sale format.
The persistence of near-20% OMO yields highlights the CBN’s continued give attention to inflation containment and exchange-rate stability, at the same time as financial development issues linger.
Allotments level to selective liquidity absorption
Whereas total demand remained sturdy, allotments haven’t all the time matched subscriptions.
- On December 30, 2025, auctions, the 168-day OMO attracted N121 billion in bids however noticed solely N75 billion allotted, whereas the 210-day paper recorded N119.35 billion in profitable bids out of N121.45 billion subscribed.
- This selective allotment underscores the CBN’s tactical method to liquidity administration.
- In contrast, the complete allotment of the longer tenor on the January 2026 public sale reinforces the central bank’s bias towards locking up liquidity over longer horizons, moderately than relying closely on shorter-dated devices.
Throughout all 4 auctions referenced, internet gross sales stood at N300 billion per supply, pointing to a constant and deliberate liquidity withdrawal technique.
What it is advisable to know:
Open Market Operations are financial instruments utilized by the CBN to soak up extra liquidity and stabilise the monetary system, to not fund authorities spending like Treasury Payments or bonds.
- When inflation rises or the naira weakens, the CBN usually will increase OMO issuance at greater rates of interest to drag money out of the banking system and dampen demand.
- Nonetheless, massive and frequent OMO issuances imply short-term money owed are continuously rolled over, typically at greater charges, transferring a heavy curiosity burden to the CBN and the broader public sector.
The CBN’s aggressive OMO programme has tightened liquidity and bolstered its anti-inflation stance. It has additionally created one of many largest short-term curiosity burdens Nigeria has seen in current occasions.