The Central Bank of Nigeria (CBN) returned about N10.89tn to the financial system in September 2026 through the repayment of maturing Open Market Operations (OMO) bills, even as it sold fresh securities worth N17.51tn during the month.
The repayments, which represented about 62 per cent of the CBN’s gross OMO sales, partially offset the liquidity-draining effect of the fresh auctions.
Data from the apex bank’s OMO auctions and financial market reports show that the CBN conducted five major OMO auctions on 1, 8, 16, 24 and 29 September, allotting a combined N17.51tn
At the same time, five batches of OMO securities matured, resulting in the repayment of approximately N10.89tn to investors.
The difference left the CBN with a net liquidity withdrawal of about N6.62tn for the month.
The figures illustrate how the apex bank has increasingly used OMO operations to manage banking system liquidity by replacing maturing securities with new instruments, rather than relying solely on outright liquidity absorption.
The largest liquidity injections came as previously issued OMO bills reached maturity.
The CBN repaid N62bn on 7 September, followed by N3.07tn the next day. Another N3.06tn matured on 15 September, while N2.27tn was repaid on 22 September.
A further N2.433tn was released into the financial system on 29 September.
In total, the repayments amounted to approximately N10.89tn.
These injections were huge enough to offset a significant portion of the liquidity removed through new OMO sales during the month.
Against the repayments, the CBN sold N2.88tn on 1 September, N4.40tn on 8 September, N3.29tn on 16 September, N2.255tn on 24 September and N4.686tn on 29 September
Despite the N10.89tn returned to investors, fresh OMO sales were larger, producing a net liquidity withdrawal of approximately N6.62tn.
The 1 September auction resulted in a net withdrawal of about N2.82tn after N2.88tn in new sales was set against N62bn in maturities.
On 8 September, the CBN sold N4.40tn while repaying N3.07tn, resulting in a net withdrawal of about N1.33tn.
Around 15 and 16 September, the N3.29tn auction was only marginally larger than the N3.06tn maturity, leaving net absorption of about N236bn.
Also, the 22 and 24 September transactions produced a marginal net injection of roughly N15bn.
The final auction on 29 September generated another significant withdrawal, with N4.686tn in new sales compared with N2.433tn in maturing securities, leaving about N2.25tn in net absorption.
The September operations also showed a growing preference for longer-dated OMO instruments as the apex bank continued to manage excess liquidity.
Demand for the securities remained high despite declining OMO stop rates during the month.
Across the five September auctions, total subscriptions reached approximately N27tn, compared with N18.72tn recorded in August.
The strong demand came as yields on longer-tenor instruments declined. Stop rates on longer-dated OMO bills fell from 18.99 per cent on 1 September to 17.29 per cent by 24 September, according to market data.
Despite the aggressive OMO activity, more than N6.2tn remained at the CBN’s Standing Deposit Facility as of 29 September, pointing to continued liquidity in the banking system.
The September figures therefore reflect that the CBN returned N10.89tn to investors through maturing securities while absorbing a larger N17.51tn through fresh OMO sales.
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