Central Bank Raises N7.30trn from OMO Bills in May
The Central Bank of Nigeria (CBN) sold OMO bills worth N7.30 trillion in May 2026 as part of efforts to manage liquidity levels in the financial system.
Demand across the open market operations conducted last month was stronger, with investors sustaining their appetite for the naira asset amidst elevated yields.
The market, however, saw tight interest-rate pricing across short-term investment instruments, reflecting the monetary authority’s decision to reduce its borrowing and balance-sheet costs.
Fixed income market analysts noted that the unwavering appetite for OMO bills was bolstered by the surplus liquidity in the money market.
The Nigerian money market maintained a broadly supportive liquidity environment throughout May 2026, buoyed by substantial OMO maturities and sustained investor demand for sovereign fixed-income securities, Cowry Asset Management Limited said in a report.
The market recorded an inflow of N5.73 billion from expired OMO bills, the report said, while the CBN simultaneously withdrew ₦7.30 trillion through OMO issuances.
The OMO bills actions resulted in a net liquidity withdrawal of approximately ₦1.57 trillion from the financial system, according to Cowry Asset Limited.
The firm said the CBN’s aggressive liquidity management strategy tempered the pace of yield moderation across the market through sizeable liquidity sterilisation operations.
Nevertheless, robust inflows and limited funding pressures enabled liquidity conditions to recover strongly towards month-end, with system liquidity closing the final week at ₦6.02 trillion, up from ₦4.96 trillion at the end of April.
Cowry Asset said in its report that the financial system liquidity conditions are expected to remain favourable, supported by a robust maturity profile and sustained demand for fixed-income assets.
However, the direction of yields will continue to be influenced by the CBN’s liquidity management actions, inflation dynamics, and investor expectations regarding the monetary policy outlook.
