CBN allots N12.823 trillion as investors pour N20.58 trillion in September OMO auctions against N3.9 trillion offer

The Central Bank of Nigeria (CBN) allotted approximately N12.823 trillion at four Open Market Operations (OMO) auctions in September 2026, as investors submitted a combined N20.58 trillion in bids against just N3.9 trillion offered.

Nairametrics’ analysis of the CBN’s September OMO auction results from September 1, 8, 16 and 24 shows that investor appetite remained strong throughout the month despite rates shifting decisively lower, particularly in the final week.

The remarkable takeaway from the September OMO auctions was the sharp decline in stop rates, as accepted rates on longer-tenor instruments fell by 170 basis points over the course of the month.

September OMO Demand Hits N20.58 trillion:

Across the four OMO auctions, investor demand consistently exceeded the amounts offered by wide margins. Cumulative subscriptions reached N20.58 trillion against N3.9 trillion offered, representing demand of about 5.28 times the amount on offer.

• On September 1, the CBN offered N1 trillion, received N5.498 trillion in subscriptions and allotted N2.880 trillion, translating to a subscription-to-offer ratio of 5.50 times.
• The September 8 auction attracted the month’s largest single-auction demand, with N6.306 trillion in subscriptions against N1 trillion offered, while successful allotments reached N4.397 trillion.
• On September 16, subscriptions stood at N3.034 trillion against N1 trillion offered, representing the month’s weakest demand session, although bids were still 3.03 times the offer.
• The September 24 auction attracted N5.741 trillion in subscriptions against N900 billion offered, a ratio of 6.38 times, while N2.255 trillion was successfully allotted.

Overall, successful allotments stood at approximately N12.823 trillion, equivalent to about 3.29 times the total amount offered and 62.3% of cumulative investor bids.

OMO rates fall 170 basis points:

The clearest pricing trend across September was the decline in rates on the CBN’s longer-tenor instruments, from 18.99% at the beginning of the month to 17.29% by the final auction. Investor demand remained concentrated in the longest-dated securities even as their rates declined.

• The 147-day and 154-day instruments both cleared at 18.99% on September 1, while the comparable 147-day and 154-day rates fell to 18.49% and 18.41%, respectively, on September 8.
• On September 16, the comparable 153-day instrument edged lower to 18.39%, before the 152-day instrument dropped sharply to 17.29% on September 24.
• The September 24 auction also introduced a 180-day instrument that cleared at 16.99% but still attracted N3.883 trillion, representing 67.6% of that day’s total subscriptions.

Nearly two-thirds of the 170-basis-point decline occurred in the final week, coinciding with the Monetary Policy Committee’s 350-basis-point reduction in the benchmark rate to 23% at its September 22 meeting.

Despite declining rates, demand remained strong, with September’s N20.58 trillion in OMO subscriptions representing the highest level recorded so far in 2026.

CBN intensifies liquidity mop-up:

September’s OMO activity extends a broader pattern of heavy subscriptions to CBN OMO and Treasury Bills auctions during 2026. The apex bank collectively took out a cumulative N20.96 trillion through OMO and Treasury Bills auctions in September alone.

• The CBN closed its Q3 2026 NTB Issuance Programme with N8.14 trillion allotted across eight auctions between July and September, about 40.34% above the N5.8 trillion originally targeted.
• In July alone, the CBN mopped up N7.2 trillion through OMO sales, pushing total 2026 OMO sterilisation above N50 trillion even before September’s figures were added.
• September OMO subscriptions increased from N18.72 trillion in August to about N20.6 trillion, with the CBN linking the increase partly to wider OMO access for individuals, companies and non-bank financial institutions.
• The liquidity backdrop has kept banks flush with cash for much of the year, while the CBN has routinely absorbed more through its OMO and NTB windows than initially offered.

With rates falling sharply heading into October and demand still running several multiples above stated offers, upcoming OMO and NTB auctions will show whether the lower-rate environment coincides with a moderation in investor appetite for the CBN’s liquidity-mop-up instruments.