CBN Cancels N700bn T-Bills Auction Amid Liquidity Issues

The Central Bank of Nigeria (CBN) has cancelled the planned N700bn treasury bills auction set for 5 August 2026, following a significant liquidity tightening after absorbing N4.69tn from the banking system through Open Market Operations (OMO) over two days. On 3 August, the CBN absorbed N2.52tn via a 141-day OMO bill, followed by another N2.17tn through 112-day and 113-day OMO bills on 4 August.

The cancellation, although not officially explained by the CBN, is believed to be a response to concerns about excessive liquidity tightening. The auction was intended to offer N700bn across 91-day, 182-day, and 364-day T-bills, with settlement planned for 6 August.

This decision follows a previous sterilisation of N7.18tn through OMO auctions in July, bringing the total liquidity withdrawal to over N11.8tn. The CBN is balancing the need for domestic financing against the risk of further liquidity constraints, with the cancelled auction being part of a N5.8tn T-bills issuance program for Q3 2026.