CBN Mops Up N12.14 Trillion in Cash via OMO Auctions

In September, the Central Bank of Nigeria (CBN) mopped up N12.14 trillion in cash through two Open Market Operations (OMO) auctions held on September 24 and 29. The CBN received subscriptions of N12.14 trillion against an offer of N3.4 trillion, with allotments reaching approximately N6.94 trillion.

This strong demand followed a 350 basis point cut in the Monetary Policy Rate (MPR) to 23 percent and the CBN's intensified liquidity management through OMO sales. At the September 24 auction, the CBN offered N900 billion but received N5.741 trillion in bids.

On September 29, investors submitted N6.399 trillion against N2.5 trillion offered. The 180-day instrument attracted N3.883 trillion, while the 266-day instrument accounted for 71 percent of total subscriptions that day.

Despite heavy subscriptions, yields moderated, with the 152-day and 180-day instruments clearing at 17.29 percent and 16.99 percent, respectively. Ayokunle Olubunmi, Head of Financial Institutions’ Rating at Agusto and Co, noted that the expansion of market participation was a key factor in driving demand.