CBN Injects ₦655bn via OMO Auction to Refinance Maturing Bill

The Central Bank of Nigeria (CBN) has injected ₦655.25 billion into the financial system through an Open Market Operation (OMO) auction, aimed at refinancing maturing bills worth ₦1.14 trillion.

The auction, held earlier this week, is part of the apex bank’s strategy to manage system liquidity and ensure monetary stability.

During the auction, the CBN offered ₦500 billion across two tenors — 182-day and 210-day bills — and recorded total subscriptions amounting to ₦743.25 billion. This resulted in a bid-to-offer ratio of 1.5x, signaling strong investor confidence and sustained interest in naira-denominated assets.

The 182-day OMO bills were allotted at a stop rate of 23.77%, while the 210-day bills cleared at 23.98%. The elevated rates reflect the central bank’s current tight monetary policy stance amid ongoing efforts to curb inflation and stabilize the foreign exchange market.

By conducting the auction, the CBN aims to mop up excess liquidity from the banking sector, mitigate inflationary pressures, and maintain macroeconomic balance. This move aligns with the broader monetary tightening measures adopted in recent months to address Nigeria’s economic challenges.

The OMO auction is the latest in a series of interventions by the central bank to fine-tune liquidity conditions and reinforce investor confidence in the financial system.