The Central Bank of Nigeria (CBN) has provided N2 trillion in Open Market Operations (OMO) payments to take in extra liquidity within the banking system, following a surge in banks’ deposits at its Standing Deposit Facility to greater than N6 trillion earlier this month.
The provide, scheduled for Thursday, October 22, 2026, includes N1 trillion every in 138-day and 180-day payments, in accordance to the CBN’s public sale discover.
Bidding is scheduled to happen between 1 p.m. and 1:30 p.m., with the shorter-tenor instrument maturing on March 9, 2027, and the longer invoice on April 20, 2027.
The public sale comes amid elevated liquidity within the banking system following substantial repayments on maturing securities. The Financial Markets Dealers Association (FMDA) projected OMO maturities of N2.067 trillion for the week starting October 19.
The CBN’s newest provide is equal to about 96.8 per cent of the projected maturities, suggesting that the public sale may take in a considerable portion of the funds returning to the monetary system.
However, the precise influence on liquidity will rely on the amount of payments ultimately allotted by the apex financial institution, because the introduced provide doesn’t robotically translate into an equal withdrawal.
Banks’ web placements on the CBN’s Standing Deposit Facility exceeded N6 trillion earlier in October following an OMO reimbursement of roughly N2.41 trillion on October 13.
FMDA information confirmed that banking system liquidity rose by 69.39 per cent to N6.283 trillion within the week ended October 16, in contrast with N3.709 trillion within the previous week.
The improve was partly attributed to OMO repayments, with no recent OMO gross sales recorded in the course of the evaluation week.
The newest public sale follows the CBN’s October 6 train, when it allotted roughly N3.31 trillion towards an preliminary provide of N2 trillion and subscriptions of N3.51 trillion.
At that public sale, the apex financial institution allotted N2.67 trillion within the 182-day instrument, representing about 80.7 per cent of the full allotment, indicating stronger demand for the longer-tenor invoice.
Stop charges settled at 17.22 per cent for the 147-day invoice and 16.92 per cent for the 182-day instrument, each decrease than the charges recorded on the September 29 public sale.
In September, the CBN bought roughly N17.51 trillion in OMO payments towards maturities of N10.89 trillion, leading to a web liquidity withdrawal of about N6.62 trillion.
The October 22 public sale is predicted to present additional perception into the CBN’s liquidity administration technique and buyers’ urge for food for short-term authorities securities.
The ultimate subscription, allotment and stop-rate figures will decide the extent to which the newest train reduces extra funds within the banking system.
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