CBN allots N3.854 trillion in OMO auction, exceeding original offer by N2.354 trillion

The Central Bank of Nigeria (CBN) allotted N3.854 trillion at its Open Market Operations (OMO) auction on November 10, 2026, exceeding its initial N1.50 trillion offer by N2.354 trillion as investors showed strong preference for longer-dated securities.

The auction results published by the apex bank showed that investors submitted N4.069 trillion in bids, representing a bid-to-cover ratio of 2.71 times the advertised offer.

The auction results reflect strong demand for longer-tenor instruments just as in all previous auctions, with the CBN accepting almost 95% of subscriptions while stop rates declined across the longer maturities.

CBN OMO allotment hits N3.85 trillion:

The CBN offered N500 billion each across the 154-day, 252-day and 329-day instruments, bringing the total advertised offer to N1.50 trillion.

However, investor demand significantly exceeded the amount offered, prompting the apex bank to allot N3.854 trillion, approximately 2.57 times its initial offer.

• Total subscriptions reached N4.069 trillion, representing a bid-to-cover ratio of 2.71 times the advertised offer.
• The CBN rejected approximately N215.13 billion in bids, representing 5.29% of total subscriptions, while accepting about 94.71%.
• The 329-day bill attracted the highest demand, receiving N2.82 trillion in subscriptions against an offer of N500 billion.
• The 154-day instrument received N457.89 billion in bids, below its N500 billion offer, while the 252-day bill attracted N791.50 billion.
• The 329-day instrument, which matures on October 5, 2027, accounted for approximately 72.4% of total allotments, with the CBN accepting N2.79 trillion at a stop rate of 15.99%.
• The 252-day bill, maturing July 20, 2027, attracted N783.50 billion in allotments at 16.68%, with only N8 billion in bids rejected.
• The shorter 154-day instrument recorded a different outcome, with N280.76 billion allotted at 17.44%, representing approximately 61.32% of subscriptions.

The results show that investors were more willing to commit funds to longer-dated securities at lower stop rates, rather than accept the higher rates offered on shorter maturities.

CBN changes OMO auction allotment strategy:

The November 10 auction extends a pattern of substantial OMO allotments by the CBN, although the level of acceptance differs from some of its recent operations.

At the November 3 auction, the apex bank offered N1.50 trillion, attracted N3.52 trillion in subscriptions and allotted approximately N2.95 trillion across the 119-day, 126-day and 133-day instruments.

The November 3 auction recorded stop rates of 17.77%, 17.71% and 17.67% across the three tenors.

The latest N3.854 trillion allotment represents an increase of approximately N900 billion compared with the November 3 outcome.

At the November 6 auction, the CBN allotted N724.32 billion, accepting approximately 38.37% of N1.887 trillion in bids against a N1 trillion offer.

The latest auction therefore represents a notable change in allotment behaviour, particularly as the CBN accepted almost all subscriptions for the 252-day and 329-day instruments.

The longer-dated securities cleared at lower stop rates than the shorter instrument. The difference between the 154-day and 329-day stop rates was 145 basis points, with the longer bill clearing at 15.99% compared with 17.44%. The outcome also highlights the scale of the CBN’s liquidity-management operations.

Investors lock in lower OMO yields:

The latest auction comes against the backdrop of elevated banking-system liquidity, with substantial funds previously placed by banks at the CBN’s Standing Deposit Facility (SDF).

Nairametrics previously reported that SDF balances rose to N8.311 trillion in the week ended November 6, even as the apex bank continued absorbing liquidity through OMO operations.

• The November 10 auction resulted in N3.854 trillion being allotted, substantially exceeding the initial N1.50 trillion offer.
• The 329-day instrument attracted approximately 69.3% of total bids, highlighting investors’ preference for longer-dated securities.
• Stop rates declined from 17.44% on the 154-day bill to 15.99% on the 329-day instrument.
• The CBN’s previous large allotments included approximately N4.686 trillion at the September 29 auction.
• The N3.854 trillion allotment represents a substantial liquidity mop-up, although its ultimate impact on banking-system liquidity will depend on other movements, including OMO maturities, Treasury Bills repayments and Federation Account allocations.
• For fixed-income investors, the latest results suggest a willingness to lock in lower yields for longer periods, potentially reflecting expectations of declining interest rates or limited availability of comparable high-yielding alternatives.

However, the undersubscription of the 154-day instrument suggests that investors remain less interested in shorter-dated securities at the higher stop rate.

The next OMO auctions and the volume of maturing obligations will therefore be important in determining whether the CBN sustains its aggressive liquidity absorption and whether the current preference for longer-dated instruments continues.