The Central Bank of Nigeria (CBN) has reported a significant increase in investors' subscriptions for its Open Market Operations (OMO) bills, rising to N20.6 trillion in September 2026. This represents a 10% growth from N18.72 trillion in August, according to data from the apex bank. The surge in subscriptions follows the CBN's decision to open its market operations to individuals, companies, and non-bank financial institutions. The increased participation has led to a N1.88 trillion increase in subscriptions.
The CBN uses OMO auctions to manage liquidity in the financial system by issuing bills to absorb excess funds and buying securities when it seeks to inject liquidity. In September, the CBN offered N3.9 trillion at OMO auctions, compared with N3.8 trillion in August. Successful bids totalled N12.82 trillion, up from N12.02 trillion in the preceding month. The figures suggest that demand has remained strong despite the liquidity already withdrawn from the system.
The apex bank's decision to widen participation in OMO auctions has given more investors access to the bills through deposit money banks. In a circular dated August 12, 2026, the Acting Director of the CBN's Financial Markets Department, Mr. Okey Umeano, said eligible investors could participate in both the primary and secondary OMO markets through deposit money banks. The move aims to increase the efficiency of the financial system.
The CBN has also removed certain restrictions that had prevented banks participating in the Nigerian Foreign Exchange Market or purchasing government securities at primary auctions from accessing its Discount Window on the same day. However, the restriction on accessing the Discount Window and participating in an OMO auction on the same day remains. This adjustment is expected to enhance the overall functioning of the financial markets.
At the September 24 auction, the stop rate on a 152-day OMO bill was about 17.29 per cent. Analysts said the wider access and attractive returns could intensify competition for funds between fixed-income instruments and equities. The Managing Director of Highcap Securities Limited, Mr. David Adonri, said the growth in OMO activity reflected the CBN's efforts to absorb excess liquidity.
Meanwhile, the CBN has clarified that its recent adjustment of the Monetary Policy Rate (MPR) was not an easing of monetary policy, but a deliberate reset to close the widening gap between its benchmark rate and actual money-market conditions. The apex bank said the move aimed to restore alignment between the policy signal and where liquidity and interest rates were trading in the financial markets.
Special Adviser to the CBN Governor on Financial Markets and Economic Policy, Mr. Mayokun Ajibade, explained that the distinction was important because the central bank's policy stance remained "very restrictive" despite the adjustment in the benchmark rate. The clarification aims to provide transparency and guidance to market participants.
Key points
- CBN's OMO subscriptions surge to N20.6tn in September
- Apex bank clarifies MPR reset targets broken link between policy, market rates
- Wider access and attractive returns could intensify competition for funds between fixed-income instruments and equities
