CBN Returns N10.89tn to Banks in September, but Drains N6.62tn Net

The Central Bank of Nigeria returned about N10.89tn to the financial system in September 2026 through the repayment of maturing Open Market Operations (OMO) bills, even as it sold fresh securities worth N17.51tn during the month.

The repayments represented about 62 per cent of the CBN's gross OMO sales and partially offset the liquidity-draining effect of the new auctions. The gap left the apex bank with a net liquidity withdrawal of about N6.62tn for September.

Five auctions, five maturities

The CBN conducted five major OMO auctions on 1, 8, 16, 24 and 29 September, allotting a combined N17.51tn. In the same month, five batches of OMO securities matured, pushing roughly N10.89tn back to investors.

The largest injections came as previously issued bills reached maturity. The CBN repaid N62bn on 7 September, followed by N3.07tn the next day. Another N3.06tn matured on 15 September, while N2.27tn was repaid on 22 September. A further N2.433tn was released into the financial system on 29 September.

Against those repayments, the CBN sold N2.88tn on 1 September, N4.40tn on 8 September, N3.29tn on 16 September, N2.255tn on 24 September and N4.686tn on 29 September.

How each auction landed

The 1 September auction produced a net withdrawal of about N2.82tn, after N2.88tn in new sales was set against N62bn in maturities.

On 8 September, the CBN sold N4.40tn while repaying N3.07tn, leaving a net withdrawal of about N1.33tn.

Around 15 and 16 September, the N3.29tn auction was only marginally larger than the N3.06tn maturity, leaving net absorption of about N236bn.

The 22 and 24 September transactions produced a marginal net injection of roughly N15bn.

The final auction on 29 September generated another significant withdrawal, with N4.686tn in new sales against N2.433tn in maturing securities, leaving about N2.25tn in net absorption.

Strong demand, falling stop rates

September's operations also showed a growing preference for longer-dated OMO instruments as the apex bank managed excess liquidity. Demand stayed high even as stop rates declined.

Across the five auctions, total subscriptions reached approximately N27tn, compared with N18.72tn recorded in August. Stop rates on longer-dated OMO bills fell from 18.99 per cent on 1 September to 17.29 per cent by 24 September, according to market data.

Despite the aggressive OMO activity, more than N6.2tn remained at the CBN's Standing Deposit Facility as of 29 September, pointing to continued liquidity in the banking system.

What it means

The September numbers show the CBN leaning harder on OMO to manage banking system liquidity, replacing maturing securities with new instruments rather than relying solely on outright absorption. With a net N6.62tn pulled out and over N6.2tn still sitting at the Standing Deposit Facility, banks entered the final quarter still holding substantial idle cash, a factor that will shape money market rates and the naira in the weeks ahead.