CBN opens N1.5 trillion OMO auction today as banking-system cash exceeds N5.9 trillion

The Central Bank of Nigeria (CBN) is conducting an Open Market Open auction today targeting to sell N1.5 trillion as fresh wave of liquidity has already risen above N5.9 trillion in addition to estimated inflows of N2.448 trillion expected to enter the banking system this week.

In the auction scheduled to hold this morning, the apex bank is offering N1.5 trillion split equally into N500 billion each across three tenors of 154-day, 252-day, and N329-day maturities.

This is the third OMO auction between November 3 and 10 as the CBN turns aggressive in renewed effort to absorb sharp rise in excess cash even as the Financial Market Dealers Association (FMDA) projects additional N2.448 trillion to enter the banking system.

According to FMDA weekly market report published on Monday, November 9, 2026, banking-system liquidity increased by 15.36% week-on-week to N8.505 trillion as at close of trading on Friday, November 6, up from N7.373 trillion the preceding week.

The expected inflows are dominated by Open Market Operations (OMO) maturities, placing renewed attention on the CBN’s capacity to absorb excess cash through fresh securities auctions.

OMO maturities dominate weekly inflows:

The FMDA projects total liquidity inflows of N2.448 trillion this week, representing a decline of approximately N162 billion, or 6.21%, from N2.610 trillion in the preceding week.

Despite the reduction in expected inflows, banking-system liquidity remains elevated, with substantial OMO maturities scheduled during the period.

• OMO maturities are projected at N2.298 trillion, up 13.99% from N2.016 trillion in the previous week, accounting for approximately 93.9% of total expected inflows.
• Treasury Bills maturities are expected to decline by 73.89% to N148.565 billion.
• Corporate bond coupon payments are projected to fall by 86.75% to N1.707 billion.
• No inflows are expected from commercial paper maturities, FGN bond coupons, FGN bond maturities or Federation Account Allocation Committee distributions.
• CBN’s financial data also showed that banks had N5.915 trillion deposited at the CBN’s Standing Deposit Facility (SDF) on November 9, down from N8.311 trillion on November 6 following OMO settlements.

The reduction in SDF balances occurred even as the broader banking-system liquidity measure increased on a week-on-week basis.

However, the projected inflows do not automatically translate into an equivalent increase in net liquidity.

The eventual impact will depend on how much cash the CBN absorbs through OMO operations and how much is withdrawn through government securities issuance.

CBN accelerates November OMO auctions:

The CBN has already raised approximately N5.667 trillion through OMO auctions held on November 3 and November 6, equivalent to about 91.7% of the N6.182 trillion allotted throughout October.

The accelerated issuance comes as the apex bank continues to manage substantial liquidity balances and upcoming securities maturities.

• At the November 3 auction, the CBN offered N1.50 trillion, received N3.52 trillion in subscriptions and allotted N2.95 trillion.
• Stop rates at that auction were 17.77%, 17.71% and 17.67% for the 119-day, 126-day and 133-day tenors, respectively.
• On November 6, the CBN offered another N1.50 trillion, attracted N5.74 trillion in subscriptions and allotted N2.72 trillion.
• The November 6 stop rates were 17.25%, 16.54% and 15.74% for the 179-day, 270-day and 361-day instruments, respectively.
• Meanwhile, the Debt Management Office (DMO) has continued to limit Treasury Bills allotments relative to investor demand.
• At the November 4 auction, the DMO allotted N509.401 billion against an N800 billion offer despite receiving N2.045 trillion in subscriptions.
• The allotment represented approximately 24.9% of total bids, while stop rates remained unchanged.

The DMO is scheduled to return to the market on November 11 with another N800 billion Treasury Bills offer, comprising N100 billion each in 91-day and 182-day bills and N600 billion in 364-day bills.

The auction is expected to settle on November 12, when N148.565 billion in Treasury Bills maturities are due.

November liquidity outlook remains elevated:

The latest liquidity projections follow several months of substantial OMO issuance as the CBN seeks to manage excess cash in the banking system.

Nairametrics previously reported that SDF balances increased from N6.966 trillion on November 4 to N8.311 trillion on November 6, despite the CBN’s liquidity absorption operations.

• FMDA projects approximately N13.79 trillion in total liquidity inflows during November, about N292 billion above the October estimate.
• OMO maturities, Federation Account allocations and Treasury Bills repayments account for approximately 96.8% of the projected monthly inflows.
• In September, the CBN allotted N17.51 trillion in OMO securities against N10.89 trillion in maturities.
• The September figures represented a net liquidity withdrawal of approximately N6.62 trillion through OMO operations.
• The latest weekly projection suggests that maturing OMO securities will remain the largest source of potential liquidity injections in the near term.

With OMO maturities accounting for almost 94% of this week’s expected inflows, the CBN’s subsequent auction decisions will be important in determining whether banking-system liquidity continues to rise.

The direction of liquidity will ultimately depend on the interaction between maturing securities, fresh OMO allotments and government borrowing operations.