CBN Hikes Rate on OMO Bills, Raises N1.75 Trillion
The Central Bank of Nigeria (CBN) hiked the interest rate on OMO bills at the last auction for the first quarter of 2026, with a total allotment of N1.75 trillion.
As excess liquidity expanded in the money market, the authority floated an OMO auction totalling N600 billion across three tenors -33-day, 75-day and 96-day.
The excess liquidity level in the financial system exceeded N8 trillion, further spurred by N800 billion in repayments from expired OMO bills and bank deposit activities.
Investment firms reported that the CBN’s open market operations auctions saw robust participation, with overall subscriptions totalling ₦2.81 trillion.
Reflecting sustained interest in duration, total demand was clearly skewed toward longer maturities. The 33-day instrument recorded ₦844.50 billion in subscriptions, with ₦225.50 billion allotted, cleared at a spot rate of 21.57%.
The 75-day tenor saw relatively weaker demand at ₦142.25 billion, with ₦74.50 billion allotted at a spot rate of 19.75%.
Due to sustained appetite for long-duration assets, the 96-day OMO bill’s tenor was heavily oversubscribed at ₦1.83 trillion, more than 9.1 times its offer size.
The CBN allotted ₦1.45 trillion worth of 96-day OMO bills at a slightly higher stop rate of 19.94%, highlighting investors’ preference for locking in yields for longer durations. #CBN Cuts Rates on Treasury Bills, Rejects 77% of Total Bids