CBN Sold N17.51 Trillion in OMO Bills in September, Withdrew N6.62 Trillion Net
By Aboki Forex —
The Central Bank of Nigeria sold about N17.51 trillion in Open Market Operations bills in September 2026 and repaid roughly N10.89 trillion in maturing bills over the same period, leaving a net liquidity withdrawal of about N6.62 trillion.
The gross sales came from five OMO auctions held on September 1, 8, 16, 24 and 29. The N17.51 trillion allotted was about 2.7 times the cumulative N6.4 trillion initially offered. But the large repayments mean a significant share of the liquidity absorbed through new sales had first been returned to the banking system through maturing bills, so the entire N17.51 trillion did not represent fresh tightening.
Maturities Offset 62% of Sales
Five OMO maturities worth approximately N10.89 trillion were recorded in the month, equal to about 62% of gross sales. That left net absorption of about N6.62 trillion, or 38% of the total sold.
The CBN repaid N62 billion on September 7, then N3.07 trillion on September 8. Another N3.06 trillion matured on September 15, while N2.27 trillion was repaid on September 22. The final major maturity came on September 29, when N2.433 trillion returned to the financial system.
Against those repayments, the CBN recorded sales of N2.88 trillion, N4.40 trillion, N3.29 trillion, N2.255 trillion and N4.686 trillion across the five auctions. Much of the activity was therefore the replacement of maturing securities with fresh instruments rather than outright withdrawal of the full amount.
Net Withdrawal Varied Across the Month
The September 1 auction and September 7 maturity produced net absorption of about N2.82 trillion, based on N2.88 trillion in sales against N62 billion repaid. On September 8, N4.40 trillion was sold against N3.07 trillion repaid, leaving net withdrawal of about N1.33 trillion.
Around September 15 and 16, sales of N3.29 trillion exceeded the N3.06 trillion repayment by about N236 billion. The September 22 and 24 transactions resulted in a marginal net injection of roughly N15 billion. On September 29, N4.686 trillion in sales exceeded the N2.433 trillion same-day maturity by about N2.25 trillion, making the final auction another major net withdrawal.
The September 16 data contains an inconsistency. The reported N3.292 trillion allotment exceeded total subscriptions of N3.034 trillion, driven by a 69-day entry showing N861.85 billion allotted against N408.52 billion subscribed. If that allotment were capped at subscriptions, gross September sales would be about N17.06 trillion and net absorption roughly N6.17 trillion. The N17.51 trillion figure reflects the CBN data as reported.
Investors Favour Longer Tenors
Demand stayed strong even as OMO rates declined. Stop rates on longer-tenor instruments fell by about 170 basis points, from 18.99% on September 1 to 17.29% as of September 24.
The September 29 auction extended the maturity profile further, introducing a 266-day instrument maturing in 2027. It cleared at 16.23% and attracted N4.543 trillion in subscriptions against N1 trillion offered, demand of 4.54 times the offer. The CBN allotted N2.996 trillion on the 266-day bill, while the 182-day and 147-day bills cleared at 16.94% and 17.24%.
Total subscriptions across the five auctions reached about N27 trillion, up from N18.72 trillion in August. The CBN still held more than N6.2 trillion at the Standing Deposit Facility as of September 29, a sign that substantial liquidity remains in the banking system.
The shift towards longer-dated instruments pushes some repayments into 2027, reducing the amount returning to the banking system in the near term. That supports the CBN's tight stance, keeping pressure on naira liquidity and on the cost of funds for businesses.