The Central Bank of Nigeria (CBN) has withdrawn a combined N4.72 trillion from the banking system through four Open Market Operations (OMO) auctions conducted on August 26 and 27, 2026, as investors continued to show strong appetite for high-yielding government securities.
Data from the CBN showed that the four auctions, covering 96-day, 97-day, 132-day and 152-day instruments, attracted total subscriptions of N8.62 trillion, more than four times the N2 trillion offered.
The 97-day OMO, offered on August 26, attracted N783.49 billion in subscriptions against the N500 billion offered, with N613 billion allotted. The instrument cleared at 19.90 per cent, the highest yield recorded across the four auctions.
Also on August 26, the CBN offered another N500 billion in a 132-day OMO. Investors submitted N3.478 trillion in bids, representing about 6.96 times the amount offered, while N2.183 trillion was eventually allotted. The final rate stood at 19.65 per cent.
On August 27, the 96-day OMO attracted N1.067 trillion in subscriptions against N500 billion offered. However, only N160.46 billion was allotted, with the instrument clearing at 19.85 per cent.
The 152-day OMO auction conducted the same day recorded N3.294 trillion in subscriptions, about 6.59 times the amount offered. The CBN allotted N1.768 trillion at a final rate of 19.32 per cent, the lowest yield among the four instruments.
The 132-day and 152-day instruments accounted for the bulk of demand and allotments, attracting combined subscriptions of N6.77 trillion and allotments of N3.95 trillion.
The strong demand for the longer-dated instruments, despite their comparatively lower yields, suggests that investors were willing to lock in returns for longer periods amid expectations surrounding future interest rates and liquidity conditions.
Meanwhile, the OMO mop-up came as significant liquidity flowed back into the financial system through repayments of maturing government securities.
Primary market repayments totalled N4.302 trillion during the two-day period, comprising N2.321 trillion on August 26 and N1.981 trillion on August 27.
Primary market sales on August 27, however, withdrew N762.89 billion, leaving a net primary market liquidity injection of about N3.539 trillion.
When this was compared with the N4.724 trillion withdrawn through OMO operations, the banking system recorded an estimated net liquidity withdrawal of approximately N1.185 trillion during the two days.
Despite the liquidity absorption, the banking system remained relatively liquid. Opening balances of banks and discount houses stood at N169.55 billion on August 26, rose to N223.89 billion on August 27 and moderated to N194.76 billion on August 28.
The Standing Deposit Facility, where banks place excess funds with the CBN, also stood at N3.42 trillion as of August 28.
The figures indicate that substantial liquidity remained in the financial system despite the CBN’s aggressive OMO operations, while investor demand for high-yielding short-term securities remained strong.
