The Central Bank of Nigeria (CBN) has allotted ₦3.854 trillion in its latest Open Market Operations (OMO) auction as the banking system prepares for another ₦2.448 trillion in expected liquidity inflows, largely from maturing securities.
The latest allotment, which exceeded the apex bank’s initial offer of ₦1.5 trillion by ₦2.354 trillion, highlights its intensified efforts to withdraw excess cash from the financial system and contain potential inflationary and foreign exchange pressures.
According to auction results published by the CBN and reported by Nairametrics on November 11, 2026, investors submitted ₦4.069 trillion in bids at the November 10 auction, representing 2.71 times the advertised offer.
The apex bank accepted approximately 94.71% of the subscriptions, rejecting only ₦215.13 billion.
The offer comprised ₦500 billion each across 154-day, 252-day and 329-day instruments. The longest-tenor instrument attracted the strongest demand, receiving ₦2.82 trillion in subscriptions and accounting for approximately 72.4% of total allotments.
The 329-day instrument cleared at a stop rate of 15.99%, while the 252-day and 154-day instruments recorded rates of 16.68% and 17.44%, respectively.
The auction came as the Financial Markets Dealers Association (FMDA), in its weekly market report published on November 9, projected ₦2.448 trillion in liquidity inflows into the banking system during the week.
Nairametrics reported on November 10 that the expected inflows represented a 6.21% decline from the previous week’s ₦2.610 trillion.
Maturing OMO securities account for the largest portion of the projected inflows at ₦2.298 trillion, representing approximately 93.9% of the total. Treasury Bills maturities are expected to contribute ₦148.565 billion, while corporate bond coupon payments account for another ₦1.707 billion.
Despite the expected inflows, banking system liquidity had already increased by 15.36% week-on-week to ₦8.505 trillion as of November 6, from ₦7.373 trillion in the preceding week, according to the FMDA figures reported by Nairametrics.
There were, however, signs of a reduction in funds parked by banks at the CBN.
Data cited in the November 10 Nairametrics report showed that banks’ deposits at the apex bank’s Standing Deposit Facility (SDF) declined to ₦5.915 trillion on November 9 from ₦8.311 trillion on November 6.
The decline followed recent liquidity operations, although the reduction in SDF balances does not, on its own, establish how much liquidity was permanently withdrawn from the banking system.
The latest auction also followed substantial OMO activity earlier in November. At the November 3 auction, the CBN offered ₦1.5 trillion, attracted ₦3.52 trillion in subscriptions and allotted approximately ₦2.95 trillion.
Meanwhile, the Debt Management Office (DMO) scheduled another ₦800 billion Treasury Bills auction for November 11, comprising ₦100 billion each in 91-day and 182-day instruments and ₦600 billion in 364-day bills. Settlement was scheduled for November 12, alongside ₦148.565 billion in maturing Treasury Bills.
The CBN’s liquidity management challenge therefore extends beyond the volume of fresh securities it offers. The return of funds through maturing instruments means the apex bank must continually balance new allotments against repayments and other movements in the financial system.
With OMO maturities accounting for nearly 94% of the week’s projected inflows, the scale of the CBN’s subsequent interventions will be important in determining the direction of banking system liquidity and the effectiveness of its efforts to maintain monetary stability.
