The Central Bank of Nigeria (CBN) has continued to cut yields on short-term naira securities, with rates on Open Market Operations (OMO) bills falling below 20% at its September 8, 2026 auction amid strong investor demand.
The apex bank offered ₦1 trillion across three OMO maturities but received subscriptions of ₦6.31 trillion, according to auction results reviewed by MarketForces Africa and reported on September 9, 2026. The CBN eventually allotted about ₦4.40 trillion as it sought to absorb excess liquidity from the financial system.
The 154-day OMO bill attracted the largest demand, receiving ₦4.20 trillion in subscriptions against a ₦400 billion offer. It was allotted at a spot rate of 18.41%, down from 18.99% at the previous auction on September 1.
The 147-day bill attracted ₦1.31 trillion in bids and was allotted ₦817.32 billion at 18.49%, compared with 18.99% previously. The 84-day bill cleared at 19.14%, down from 19.59% at the September 1 auction.
The latest auction marked another decline in OMO rates despite the strong demand, showing that investors were willing to accept lower returns for short-term naira assets.
The downward movement extended to Treasury bills on September 9, 2026, when the 364-day Nigerian Treasury Bill cleared at 16.62%, according to MarketForces Africa. The result followed a cut to 16.84% at the previous auction on September 2, making it the third consecutive repricing of the one-year instrument.
Demand remained concentrated at the long end of the Treasury bill market. The September 9 auction had ₦750 billion on offer across the 91-day, 182-day and 364-day bills, while investors submitted about ₦2.64 trillion in total bids, with the one-year bill attracting the bulk of demand.
The softer yields come as significant liquidity is expected to enter the financial system from maturing OMO bills. The Financial Markets Dealers Association, as reported by Nairametrics on September 8, projected ₦2.94 trillion in OMO maturities for the week, up 30.67% from ₦2.25 trillion the previous week.
The CBN’s latest actions point to a market where liquidity remains strong and investors continue to show appetite for government and central-bank securities even as returns decline. For the apex bank, the challenge is to absorb excess naira liquidity without pushing short-term funding conditions sharply higher.
The continued fall in OMO and Treasury bill rates will also be closely watched ahead of the CBN’s next Monetary Policy Committee meeting, as investors assess whether the softer short-term yields signal a broader shift in monetary conditions.
