CBN OMO Sales Hit N5.63tn in Two Weeks

In just two weeks, the Central Bank of Nigeria sold N5.63 trillion in Open Market Operations bills, reflecting strong demand from investors looking for high-yield fixed-income options.

These sales happened during three OMO auctions between May 4 and May 12, 2026. The CBN offered a total of N1.8 trillion but ended up allotting over three times that amount.

Investors Rush for OMO Bills

The auctions included eight different bills with short, medium, and long-term durations.

The 126-day bill issued on May 12 drew the most attention. The CBN offered N200 billion, but ended up allotting N1.45 trillion at a stop rate. This shows that investors are still interested in longer-term OMO bills when the yields are attractive.

What Happened in the Auctions

On May 4, the CBN sold two types of bills. The 8-day bill received N1.065 trillion in subscriptions and cleared at 21.90%. The 134-day bill got N640.1 billion in bids and cleared at 19.97%.

On May 7, the CBN sold three more bills. The 33-day bill attracted N674.4 billion, the 96-day bill drew N923.17 billion, and the 75-day bill received N38 billion in subscriptions.

On May 12, the 126-day bill was the main focus of the auction. The 35-day bill attracted N761 billion, but the CBN only allotted N25 billion, showing caution with shorter-term bills.g Excess Liquidity.

The auction results indicate that the CBN continues to use OMO bills to remove extra cash from the banking system.

However, large repayments limited the impact. The CBN repaid N4.78 trillion in two tranches during this period, leaving net issuance at N850 billion.

This means the CBN did remove some liquidity, but not as much as the headline N5.63 trillion sales figure might suggest.

Why the Market Is Buying

Investors are choosing OMO bills because yields remain high. During these two weeks, stop rates ranged from 20% to 21.90%.

For banks, pension funds, and other big investors, these yields provide strong returns with less risk than stocks or private loans.

This trend also shows how tighter monetary policy has changed Nigeria’s financial market. More money is now going into fixed-income options because they offer better returns.

What It Means for the Economy

The CBN aims to cut down excess liquidity and control inflation. Selling OMO bills helps by removing money from circulation.

But there is a trade-off. When government and CBN bills pay high yields, banks might choose them instead of lending to businesses, which can reduce credit available to the real economy.

If this trend continues, companies may have to pay more to borrow money. Small businesses could also find it harder to get affordable loans.

Expert View

The N5.63 trillion OMO sale shows that investors still want naira fixed-income assets. It also shows that the CBN is still focused on controlling liquidity.

However, the most important number is not the total allotment. The net issuance of N850 billion matters more, since repayments reduced the liquidity impact.

Now, the CBN has to balance two goals: fighting inflation and making sure credit keeps flowing to productive sectors.

FAQ

What are OMO bills?
OMO bills are short-term instruments issued by the Central Bank of Nigeria to manage liquidity in the financial system.

How much did the CBN sell in two weeks?
The CBN sold N5.63 trillion worth of OMO bills between May 4 and May 12, 2026.

Which bill attracted the strongest demand?
The 126-day bill on May 12 recorded the biggest allotment, with N1.45 trillion.

Why are investors buying OMO bills?
Investors are attracted by high yields, with stop rates around 20% to 21.90%.

What is the risk for the economy?
High-yield OMO bills can divert funds from private-sector lending and raise borrowing costs.