The Central Bank of Nigeria (CBN) opened the 2026 monetary year with strong investor demand at its first set of Open Market Operations (OMO) auctions, pulling in total subscriptions of N2.727 trillion across medium-term maturities.
The auctions reinforced the apex bank’s tight liquidity stance, with stop rates clustering between 19.34% and 19.41%, signalling little appetite for early easing of monetary conditions.
At the January 6, 2026, OMO auction, demand was overwhelmingly skewed toward the longer end of the curve. The 210-day OMO bill attracted N2.45 trillion in subscriptions, far exceeding interest in the shorter 161-day tenor, which recorded N277 billion in bids.
The CBN fully allotted the longer-dated paper, indicating a clear preference to absorb liquidity for an extended period, with the instrument maturing in August 2026.
Tenors of offer:
Maturity dates:
Offer amount: N300 billion (per tenor)
Subscriptions:
Total subscriptions: N2.727 trillion
Allotments (successful bids):
Stop (marginal) rates:
Marginal rates at the January auction settled at 19.34% for the 161-day paper and 19.40% for the 210-day paper, broadly in line with outcomes from the late-December 2025 OMO auctions, where stop rates ranged between 19.35% and 19.41%.
The marginal rate, also known as the stop rate, represents the highest accepted yield at which the total amount offered is fully allotted, setting the clearing yield for the auction.
This differs from successful bid rates, which reflect the individual yields submitted by winning bidders and may vary depending on the auction format.
The persistence of near-20% OMO yields highlights the CBN’s continued focus on inflation containment and exchange-rate stability, even as economic growth concerns linger.
Allotments point to selective liquidity absorption
Allotments point to selective liquidity absorption
While overall demand remained strong, allotments have not always matched subscriptions.
Across all four auctions referenced, net sales stood at N300 billion per offer, pointing to a consistent and deliberate liquidity withdrawal strategy.
Open Market Operations are monetary tools used by the CBN to absorb excess liquidity and stabilise the financial system, not to fund government spending like Treasury Bills or bonds.
The CBN’s aggressive OMO programme has tightened liquidity and reinforced its anti-inflation stance. It has also created one of the largest short-term interest burdens Nigeria has seen in recent times.