The Central Bank of Nigeria (CBN) sterilized N7.18 trillion from the financial system in July 2026 through Open Market Operations (OMO) auctions. This represents a 48.57% decline from the N13.96 trillion mopped up during the previous month.
This drop in the cumulative monthly total reflects a sharp fall in auction frequency. The CBN conducted just three OMO sales in July compared to the seven sessions held in June, even as individual auction sizes grew significantly.
A Shift from Frequency to Scale
The CBN utilized two distinct liquidity management approaches across June and July. June leaned heavily on frequency, with seven sales spread across the month on June 2, 8, 11, 22, 23, 29, and 30.
This sustained sterilization campaign produced the highest monthly OMO total of 2026 so far, reaching N13.96 trillion. In contrast, July focused on scale, utilizing fewer sales but larger individual allotments to manage system liquidity.
The July 28 auction alone allotted N3.5 trillion, standing out as the largest single OMO sale across both months. Despite the lower monthly total, July auctions pulled in an average oversubscription of roughly 4 times the offered amount, higher on a per-auction basis than June's average oversubscription of 3.16 times.
Breakdown of June and July Auction Data
During June, the CBN offered N600 billion at each of its seven auctions, totaling N4.20 trillion. Investors responded with subscriptions of N15.27 trillion, and the apex bank allotted N13.96 trillion, accepting 91.42% of all submitted bids.
The June 2 auction opened the month with N2.15 trillion in bids and N2.01 trillion allotted. The June 8 auction recorded the lowest subscription of the month at N1.73 trillion, with N1.51 trillion allotted. Back-to-back sales closed the month, with June 29 allotting N1.78 trillion, and June 30 being 3.13 times oversubscribed with N1.52 trillion allotted.
In July, the CBN offered N600 billion at each of its three sales on July 13, 14, and 28, totaling N1.8 trillion. The 127-day tenor was the standout instrument in both months, dominating demand and drawing N1.854 trillion in bids on July 13 alone.
Stop Rates and Policy Tightening
Stop rates through June ranged between 20.39% and 22.65%. Shorter tenors consistently cleared higher than longer-dated papers, a trend that persisted into July.
Prior to these campaigns, cumulative OMO sales between January and May 2026 stood at over N30.12 trillion. Combined with the June and July figures, the total sterilization for the year has pushed past N50 trillion, highlighting the central role of OMO in the CBN's monetary tightening stance.
