 absorbed ₦3.04 trillion from the banking system in a single Open Market Operations (OMO) auction.){kind=link}
CBN Absorbs ₦3.04trn in Single OMO Auction
The Central Bank of Nigeria (CBN) absorbed ₦3.04 trillion from the banking system in a single Open Market Operations (OMO) auction on June 5, 2026, as investor demand far exceeded the ₦600 billion offered.
According to Nairametrics analysis, total subscriptions hit ₦3.275 trillion, representing an oversubscription rate of 5.46 times the offer. This underscores the CBN’s aggressive liquidity sterilisation strategy amid excess funds in the system.
Breakdown of the auction shows strong appetite for longer-dated bills. The 7-day bill drew ₦179bn subscriptions against ₦200bn offered, with ₦169bn allotted at 21.54% stop rate.
The 35-day bill attracted ₦614bn subscriptions, with ₦465bn allotted at 21.40%. The 133-day bill was most popular, pulling ₦2.48 trillion subscriptions against ₦200bn offered, with ₦2.41 trillion allotted at 20.02%.
The 133-day bill’s 12.4-times oversubscription highlights investor willingness to lock in funds for longer periods, reflecting expectations of sustained monetary tightening.
Additional market activity further reduced liquidity. On June 4, primary market operations withdrew ₦992.68bn, following ₦1.46 trillion in NTB and bond sales against ₦464.60bn repayments. Bank balances fell from ₦108.27bn on June 2 to ₦43.92bn on June 5.
Standing Deposit Facility (SDF) balances moved from ₦5.29 trillion on June 3 to ₦4.74 trillion on June 5, suggesting liquidity conditions are tightening, though excess funds remain.
Projections by the Financial Markets Dealers Association (FMDA) estimate ₦10.9 trillion inflows into the banking system in June, with ₦7.77 trillion from maturing OMO bills. The ₦3.04 trillion absorbed on June 5 sterilised the ₦2.73 trillion repayment that matured the same day.
Cumulative OMO sales between January and April 2026 already reached ₦30.12 trillion, reflecting an unprecedented pace of liquidity management.
Experts say the CBN’s tightening stance will remain firm, with longer-tenor allotments aimed at extending maturity profiles and curbing near-term liquidity injections.