Banks keep N8.31 trillion at CBN as OMO mop-up pulls N724.32 billion

Banks placed N8.311 trillion at the Central Bank of Nigeria's Standing Deposit Facility in the week ended November 6, 2026. The CBN also raised N724.32 billion at its Open Market Operations auction on Friday, November 6, accepting 38.37% of N1.887 trillion in bids.

The SDF balance rose by N347.44 billion, or 4.36%, from N7.964 trillion on Thursday, November 5. It was also up N1.345 trillion, or 19.30%, from N6.966 trillion on Wednesday, November 4. The single OMO auction had limited effect on overall liquidity, setting up fresh OMO auctions from Monday, November 9.

SDF placements keep climbing

SDF balances climbed through the week. They were higher than the N7.72 trillion elevated liquidity reported on November 3. That implies an increase of about N591 billion in three days: N6.966 trillion on November 4, N7.964 trillion on November 5 and N8.311 trillion on November 6.

Banks' opening balances fell sharply over the same period, a sign cash moved to the SDF rather than operating accounts. Opening balances were N612.06 billion on November 4, N258.83 billion on November 5, down N353.23 billion or 57.71%, and N194.10 billion on November 6, down a further N64.73 billion or 25.01%. The fall between November 4 and November 6 was N417.96 billion, or 68.29%.

CBN data also show N572.55 billion in primary-market repayments on November 5 exceeded the N509.40 billion new Treasury Bills auction on Wednesday, November 4, a net injection of N63.15 billion.

OMO auction: strong demand, selective allotment

The CBN offered N1 trillion, split equally between the 179-day and 270-day bills. Subscriptions hit N1.887 trillion, 188.72% of the offer or 1.89x bid-to-cover. It allotted N724.32 billion, 72.43% of the offer, and left N1.163 trillion unallocated. No new OMO repayments were recorded, so the auction was a fresh mop-up, not a refinancing of maturing bills.

The 179-day bill, maturing May 4, 2027, drew N741.62 billion in bids. The CBN allotted N405.62 billion, 54.70%, at a stop rate of 17.25% and true yield of 18.8441%. The 270-day bill, maturing August 3, 2027, drew N1.146 trillion in bids. It allotted N318.70 billion, 27.82%, at a stop rate of 16.54% and true yield of 18.8458%.

The 270-day bill drew stronger demand but had the larger unallocated balance of N826.90 billion, suggesting the CBN was more selective on the longer tenor. The true yields were virtually identical at about 18.84%, though the 179-day bill cleared at a stop rate 71 basis points higher.

The November 6 allotment was much smaller than earlier operations this month. The CBN allotted about N2.95 trillion at its November 3 OMO auction, about 85.3% of the N3.46 trillion raised across the OMO and November 4 Treasury Bills auctions. The N724.32 billion raised on November 6 is roughly a quarter of the November 3 allotment.

More liquidity ahead

The Financial Markets Dealers Association projects about N13.79 trillion in inflows in November, driven largely by OMO maturities, FAAC allocations and Treasury Bills repayments. Banking-system liquidity rose 56.75% to N7.373 trillion in October from N4.703 trillion in September. Another Monetary Policy Committee meeting is scheduled for this November. Investors will watch whether the CBN keeps allotting well below subscription levels or steps up its mop-up to match expected inflows.

For the naira and Nigerian businesses, the build-up in SDF balances shows banks still have idle cash. The CBN's selective OMO allotment will shape how much of that liquidity stays parked at the apex bank and how much flows into the market.