CBN Reduces Interest Rates on Nigerian OMO, Treasury Bills
Nigerian government has continued to reduce spot rates on short-term investment securities amid improved macroeconomic conditions.
The Central Bank floated OMO bills totalling N1 trillion on Tuesday, and the offer attracted N6.32 trillion across three tenors – 84, 147 and 154 days. The allotment across the tenors totalled N4.4 trillion, while the Apex Bank turned down the remaining bids.
OMO rates continued their downward trend, with the 1 December 2026 paper clearing at 19.14%, down from 19.59% at the 1 September auction.
The February 2027 OMO bills also cleared at 18.49%, 50 basis points (bps) lower than its previous issuance rate of 18.99%, while the 9 February 2027 paper cleared at 18.41%, Herwood Securities Limited confirmed in a note.
The Apex Bank butchered rate on Nigerian Treasury bill (NTB) with one-year tenor to 16.84% at the first primary market auction conducted in Sept.
Market analysts said improved macroeconomic conditions and naira stability afford the authority to reprice its short-term borrowing instruments.
The market anticipates today’s auction to attract significant subscription but maintained that the authority is out to cut rather than increase spot rates on bills.
