CBN Withdraws N3.31 Trillion in October OMO Auction

On October 6, 2026, the Central Bank of Nigeria (CBN) conducted an Open Market Operations (OMO) auction, withdrawing approximately N3.31 trillion from the banking system. Concurrently, about N2.17 trillion in maturing OMO bills flowed back into the system, leading to a net liquidity withdrawal of around N1.14 trillion.

This action follows a trend of significant liquidity withdrawals recorded in September, where the CBN sold about N17.51 trillion in OMO bills and saw approximately N10.89 trillion mature, resulting in a net liquidity withdrawal of roughly N6.62 trillion across five auctions. Despite the inflow from maturities, the overnight lending rate increased by 25 basis points to 22.2%.

The CBN offered N2 trillion in OMO bills, split between 147-day and 182-day instruments, but allotted N3.309 trillion, indicating strong demand for longer tenor instruments. The CBN's strategy reflects its ongoing efforts to manage liquidity in the financial system while also responding to recent changes in the Monetary Policy Rate.