The Central Bank of Nigeria (CBN) has successfully absorbed N2.64 trillion in excess liquidity through its Open Market Operations (OMO) auction on January 20, 2026.
This is the second liquidity absorption by the CBN this year. Earlier, the 161-day and 210-day OMO Bills auction on January 6, 2026, was oversubscribed by N2.71 trillion, highlighting strong investor appetite for CBN instruments.
The OMO Bills recorded overwhelming demand concentrated on two 203-day tenors. The first 203-day tenor scheduled to mature on August 11, 2026, was allotted N491 billion and received a total subscription of N532 billion.
The successful bid rates ranged from 19.30% to 19.80%, while the marginal rate settled at 19.38%.
The second 203-day tenor OMO Bill offered by the Nigerian Banking Authority has a maturity date of September 22, 2026.
The CBN allotted N2.151 trillion to it, while it received significantly higher demand with subscriptions of N2.37 trillion. The successful bid rates range between 19.34% and 19.39%, while the marginal rate closed at 19.39%.
The auction results reflect the investor appetite for long-term OMO Bills investment rather than the shorter term.
It’s worth noting that both tenors were heavily oversubscribed, although the majority of the investors prefer longer-term investment with attractive returns of close to 19.4%.
Yields on the two instruments remained narrowly ranged around 19.38%–19.39%, consistent with recent OMO auctions.
The OMO Bill is one of the monetary policy instruments the Nigerian Central Bank uses to regulate inflation rates, money supply, and support naira stability.
