The Central Bank of Nigeria (CBN) withdrew ₦3.04 trillion from the banking system through an Open Market Operations (OMO) auction on June 5, 2026.
CBN Liquidity Tightening
The move followed overwhelming investor demand during the auction.
Although the apex bank offered ₦600 billion across three maturities, investors submitted ₦3.275 trillion in subscriptions.
As a result, the figure represented an oversubscription rate of 5.46 times.
Investor Demand Surges
Investors showed stronger interest in long-term instruments during the exercise.
For instance, the 7-day OMO bill attracted ₦179 billion, while the 35-day bill recorded ₦614.43 billion in subscriptions.
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Meanwhile, the 133-day bill dominated the auction after attracting ₦2.48 trillion from investors.
Consequently, the CBN allotted ₦2.41 trillion at a stop rate of 20.02%.
Overall, the central bank absorbed ₦3.04 trillion from the financial system and reinforced its aggressive liquidity tightening strategy.
Banking System Pressure
In addition, primary market operations withdrew ₦992.68 billion from the system during the week.
Similarly, bank opening balances dropped from ₦108.27 billion on June 2 to ₦43.92 billion on June 5.
Despite the tightening measures, analysts projected ₦10.90 trillion liquidity inflows into the banking system during June 2026.
Notably, maturing OMO bills would contribute most of the expected inflows.
