On May 29, 2026, the Central Bank of Nigeria (CBN) absorbed ₦1.945 trillion from the financial system through its Open Market Operations (OMO) auction.
CBN Absorbs ₦1.945Trn Via OMO Auction
It moved decisively to drain excess liquidity ahead of ₦3.35 trillion expected inflows from maturing securities.
Meanwhile, investors aggressively submitted bids worth ₦1.952 trillion against an offer size of ₦400 billion.
Demand remained strong, as market participants continued seeking short-term government securities for stable returns.
Previously, on May 21, the CBN mopped up ₦3.47 trillion in a larger auction.
Consequently, within eight days, the apex bank removed ₦5.42 trillion from the financial system.
Investor Demand Surges In Short-Term Papers
During the May 29 auction, the 102-day bill attracted dominant interest from investors.
Read Also: Naira Extends Losses, Ends May At ₦1,372/$
It drew ₦1.727 trillion in bids against ₦200 billion offered, and the CBN allotted ₦1.725 trillion at 20.37%.
Similarly, the 11-day bill attracted ₦225 billion in subscriptions against ₦200 billion on offer.
The CBN allotted ₦220 billion at a stop rate of 21.80%.
Importantly, no repayments occurred during the auction, so the CBN executed a pure liquidity-sterilisation exercise.
As a result, the bank strengthened its tightening stance across the financial system.
Liquidity Tightening Continues Across Markets
Although the auction came in smaller than the May 21 exercise, investor appetite remained strong.
In particular, longer-tenor instruments attracted higher demand as investors locked in yields.
Earlier, the May 21 auction also recorded heavy participation across multiple tenors.
Notably, investors subscribed ₦1.525 trillion to the 33-day bill alone.
Looking ahead, analysts at Cowry Asset Management expect ₦3.35 trillion inflows in early June.
These inflows will come from maturing OMO and Treasury Bills.
Furthermore, they project ₦2.72 trillion from OMO maturities and ₦631.46 billion from Treasury Bills.
As a result, total inflows may exceed a planned ₦700 billion Treasury Bills auction.
Ultimately, this dynamic may sustain system liquidity despite the CBN’s continued tightening operations.