CBN Raised N4.77trn from OMO Bills Auctions
The Central Bank of Nigeria (CBN) allotted N4.77 trillion in OMO bills to investors across primary market auctions conducted in February, as part of efforts to reduce excess liquidity in the financial system.
Amidst double-digit yields on naira assets, foreign portfolio investors (FPIs) and deposit money banks (DMBs) showed strong interest in the OMO bills, submitting a total of N6.35 trillion in bids.
The Apex Bank’s total offer size was ₦1.8 trillion, but the operations attracted significant investor demand with total subscriptions reaching ₦6.35 trillion. The Apex Bank sold ₦4.77 trillion in OMO bills, according to a report by AIICO Capital, which was significantly above the total offer size.
Financial system liquidity exhibited modest fluctuations in February 2026, influenced by market operations, bill maturities, and bank placements.
Despite these fluctuations, system liquidity remained in surplus, AIICO Capital said, noting that the average position closed at ₦2.94 trillion, up from ₦2.41 trillion in January 2025.
Analysts at AIICO Capital said the situation was influenced by ongoing placements from DMBs at the CBN’s Standing Deposit Facility (SDF) window, as well as significant OMO maturities and intermittent liquidity adjustments through OMO and Treasury bills auction.
At the beginning of the month, the liquidity position was relatively balanced at ₦596.46 billion, but expanded to ₦4.68 trillion by mid-month. This increase was primarily driven by repayments on NTB and OMO maturities, as well as continued placements in the SDF by banks.
The liquidity mop-up actions helped stabilise funding rates in the money market. Analysts at AIICO Capital noted that funding costs remained stable at 22.5% to 22.83%, indicating the depth of system liquidity.
As the month progressed, liquidity remained robust at around ₦3 trillion, despite a ₦1.11 trillion OMO settlement. Funding costs eased moderately following the Monetary Policy Committee’s (MPC) 50 basis points rate cut to 26.50%.
Overall, average system liquidity increased by ₦529.87 billion month-on-month, reaching ₦2.94 trillion. Additionally, average funding costs declined, with the Open Repo Rate (OPR) falling by 26 basis points to 22.41% (from 22.67%) and the Overnight (OVN) rate easing by 22 basis points to 22.71% (from 22.93%).
Analysts expect liquidityto remain influenced by ongoing CBN mop-up activities. Market participants are anticipating further inflows from upcoming maturities totalling ₦8.42 trillion, which includes ₦5.59 trillion in OMO maturities and ₦2.84 trillion in Nigerian Treasury bills maturities. Excess Liquidity: Banks’ Placements at SDF Window Hit N6trn
