The Central Bank of Nigeria (CBN) settled N2.97 trillion in Open Market Operations (OMO) bills maturities on Tuesday, July 14, 2026. This repayment occurred a day after the apex bank conducted N600 billion auctions, where it allotted N2.54 trillion across three tenors.
CBN's latest financial data as of Tuesday, July 14, also indicated that the bank settled N17.05 billion in primary market repayment. This brought the total repayments between Monday and Tuesday to N2.987 trillion.
This activity resulted in a net liquidity injection of about N447 billion into the banking system. The CBN achieved this by repaying N2.987 trillion while simultaneously sterilising N2.54 trillion through fresh OMO issuances on July 13, 2026.
July OMO Auction Details and Investor Shift
At the July 13 OMO auction, the CBN offered N200 billion each across three tenors: 8-day, 99-day, and 127-day OMO bills, making the total offer size N600 billion. Total subscriptions reached approximately N2.55 trillion, which was more than four times the amount on offer.
The 8-day OMO tenor attracted subscriptions of N229.58 billion, with N228.90 billion allotted at a stop rate of 21.89%. The 99-day OMO drew N462.18 billion in bids and was fully allotted at a stop rate of 20.49%. The 127-day OMO recorded subscriptions of N1.854 trillion, also fully allotted, clearing at a stop rate of 20.17% and accounting for about 73% of total demand.
Full allotment across all tenors in July contrasts sharply with the June 30 auction, where N990 billion was allotted against N1.184 trillion in bids for the 161-day tenor. The July 13 auction shows a clear shift in investor preference compared with the CBN’s late-June OMO auctions.
At the June 30 sale, total subscriptions across three tenors (7-day, 22-day, and 161-day) stood at about N1.77 trillion against N900 billion offered. Demand in July nearly rose 44% from June’s N1.77 trillion, despite the offer size shrinking to N600 billion from N900 billion, suggesting stronger system liquidity heading into mid-July.
The concentration of demand also intensified. In June, the 161-day paper absorbed 67% of total subscriptions at N1.184 trillion, with a stop rate of 19.80%. In July, this concentration deepened further, with the 127-day paper pulling in 73% of subscriptions at a slightly higher stop rate of 20.17%.
Notably, the 22-day tenor in June was undersubscribed, drawing only N174 billion against N300 billion offered. This indicated that investors were avoiding mid-length papers in favour of either very short liquidity plays or long-dated yield locks. The July auction reinforced this pattern, as the short 8-day tenor drew comparatively modest demand of N229.58 billion, well behind the longer-dated instrument.
OMO bills are short-term instruments used by the CBN to manage banking system liquidity and influence short-term interest rates. The apex bank absorbed about N4.74 trillion in its aggressive liquidity sterilisation campaign into the final weeks of June 2026.
Across July and June auctions, investors appear willing to accept lower returns in exchange for locking down yields for longer tenors. As in previous auctions, yields on all maturities continued to decline as maturities lengthened, from 21.89% on the 8-day paper to 20.17% on the 127-day paper.
The consistent oversubscription across all auctions confirms that banks and institutional investors continue to view CBN OMO instruments as attractive, risk-free options within Nigeria’s current high-liquidity environment.
