CBN offers N2.5 trillion in fresh OMO auction as N2.43 trillion repayment hits market

The Central Bank of Nigeria (CBN) has scheduled a N2.5 trillion Open Market Operations (OMO) auction for September 29, 2026, as a N2.433 trillion OMO repayment matures on the same day, creating a near one-for-one match between the fresh offer and liquidity injection.

According to the CBN’s auction notice, the offer spans three tenors: N500 billion in 147-day paper maturing February 23, 2027; N1 trillion in 182-day paper maturing March 30, 2027; and N1 trillion in 266-day paper maturing June 22, 2027. Bidding was expected to have closed at 10:30 a.m.

The closely matched amounts come as banks already hold more than N6.2 trillion at the Standing Deposit Facility (SDF), setting the stage for another major liquidity sterilisation operation by the apex bank, according to the CBN financial data on Tuesday, September 29, 2026.

OMO Offer mirrors N2.43 trillion repayment:

The scale of the new offer seen by Nairametrics is closely matched to the OMO maturity hitting the banking system on the same date, with only a N66.765 billion difference between the two figures. The N2.5 trillion offer is equivalent to about 102.7% of the N2.433 trillion repayment due on September 29.

• Longer maturities dominate the auction, with the 182-day and 266-day instruments accounting for N2 trillion, or 80% of the total offer, while the 147-day paper represents the remaining 20%.
• CBN financial-market data shows banks had placed approximately N6.278 trillion at the SDF as of September 29, up from N6.014 trillion the previous day and N5.899 trillion on September 25.
• This represents an increase of about N379 billion, or 6.4%, in SDF placements over four days.

Banks’ opening balances stood at N131.817 billion on September 29, down 52.5% from N277.741 billion on September 28, but above the N81.653 billion recorded on September 25.

No repo, reverse repo, Standing Lending Facility usage or primary-market sales were recorded across the dates reviewed, leaving SDF placements and the scheduled OMO repayment as the dominant liquidity events heading into the auction.

September OMO auctions draw N20.58 trillion:

The September 29 offer caps a month in which CBN OMO auctions attracted the strongest investor demand recorded so far this year. Across the four auctions held on September 1, 8, 16 and 24, the CBN offered a cumulative N3.9 trillion and allotted approximately N12.823 trillion.

• Investors submitted N20.58 trillion in total bids across the four auctions, more than five times the cumulative amount initially offered.
• September subscriptions reached about N20.6 trillion, up from N18.72 trillion in August, with the CBN linking the increase partly to its decision to widen OMO access to individuals, companies and non-bank financial institutions through deposit money banks.
• Rates on longer-tenor OMO instruments declined from 18.99% at the beginning of September to 17.29% at the September 24 auction, even as subscriptions continued to exceed offers by wide margins.

The pattern extends beyond September, with the CBN mopping up N4.72 trillion through OMO sales on August 26 and 27, while cumulative sales between January and April had already reached N30.12 trillion.

The September 29 auction therefore comes against a backdrop of persistent investor demand for OMO instruments despite the decline in accepted rates during the month.

CBN extends OMO tenor into 2027

The September 29 auction comes one week after the CBN’s Monetary Policy Committee cut the Monetary Policy Rate by 350 basis points to 23% at its September 22 meeting. The CBN described the decision as a reset aimed at closing the gap between its benchmark rate and prevailing money-market conditions rather than a straightforward policy easing.

• The 266-day instrument is the longest OMO tenor offered so far in the current cycle and extends the maturity profile to June 22, 2027.
• The auction follows an earlier episode on June 5, when the CBN absorbed N3.04 trillion through an OMO auction as a N2.73 trillion repayment matured on the same day.
• With SDF placements already above N6.2 trillion, the September 29 auction comes as substantial surplus liquidity remains within the banking system.
• The N2.5 trillion represents the amount offered rather than the eventual liquidity withdrawal, which will depend on the successful allotment at the auction.

The eventual allotment and stop rate on the new 266-day instrument will therefore determine how much of the N2.433 trillion repayment is reabsorbed and the pricing investors accept for locking up liquidity further into 2027.