The Central Bank of Nigeria (CBN) intensified its liquidity tightening campaign on June 8, 2026, mopping up N1.689 trillion through an Open Market Operations (OMO) auction dominated by strong investor demand for longer-dated securities.
This is according to OMO auction results published by the apex bank on Monday.
The apex bank offered a combined N600 billion across two instruments an 8-day OMO bill and a 134-day OMO bill.
However, investor demand surged to N1.689 trillion, nearly three times the amount offered.
Notably, the CBN accepted all subscriptions received across both instruments, signaling a continued willingness to absorb excess liquidity from the financial system amid ongoing monetary tightening efforts.
The outcome follows a series of aggressive OMO interventions by the apex bank in recent weeks as it seeks to contain inflationary pressures, stabilize liquidity conditions, and support exchange-rate management.
The June 8 auction results reveal a significant divergence in investor appetite between short-tenor and longer-dated OMO instruments.
The 8-day OMO bill, maturing on June 16, 2026, attracted subscriptions of just N85 billion against an offer size of N300 billion, representing an undersubscription of N215 billion.
Subscription on the 8-day paper amounted to only 28.3% of the amount offered, indicating weak investor interest in very short-term placements.
Despite the weak demand, the CBN allotted the entire N85 billion subscribed.
The 8-day instrument recorded bid rates ranging from 21.50% to 21.89%, with a stop rate of 21.89%.
By contrast, the 134-day OMO bill, maturing on October 20, 2026, attracted N1.6045 trillion in subscriptions against an offer size of N300 billion.
The longer-tenor instrument was oversubscribed by N1.3045 trillion, representing a subscription level of approximately 534.8% of the amount offered.
The CBN allotted the entire N1.6045 trillion subscribed, far exceeding the initial offer size.
Bid rates on the 134-day bill ranged from 19.94% to 20.02%, with a stop rate of 20.02%.
The longer-dated bill alone accounted for approximately 95% of total subscriptions recorded during the auction.
The 8-day instrument cleared at a yield of 187 basis points higher than the 134-day bill, yet demand remained overwhelmingly concentrated on the longer tenor.
The demand pattern suggests investors were willing to accept lower yields in exchange for locking in returns over a longer investment horizon.
The CBN’s decision to accept the entire N1.689 trillion subscribed further highlights the apex bank’s determination to withdraw excess liquidity from the financial system and maintain tight monetary conditions.
The June 8 auction underscores the persistence of elevated liquidity levels within the Nigerian financial system despite several large-scale liquidity sterilization exercises conducted in recent weeks.
Investor’s preference for the 134-day bill suggests market participants expect yields to remain attractive over the medium term and are seeking to secure those returns before any potential shift in monetary conditions.
The auction also reinforces a trend observed throughout 2026, where longer-dated OMO instruments consistently attract stronger demand than shorter maturities.
The willingness of investors to commit over N1.6 trillion to a 134-day instrument at a stop rate of 20.02% indicates sustained confidence in CBN securities as a preferred investment vehicle for managing surplus liquidity.
By accepting subscriptions nearly three times higher than the amount initially offered, the apex bank effectively removed N1.689 trillion from the banking system in a single session, continuing its aggressive liquidity-management strategy.
A comparison with recent OMO auctions shows that while investor demand remained robust on June 8, the scale of liquidity absorption was lower than the record-setting auctions conducted in May.
On May 21, 2026, the CBN absorbed N3.692 trillion after offering N600 billion across a 33-day and a 138-day bill, with subscriptions exceeding the offer size by more than six times. The apex bank accepted all bids received.
By comparison, the June 8 auction attracted N1.689 trillion in subscriptions against the same N600 billion offer size, representing an oversubscription ratio of about 2.82 times.
The May 21 exercise remains one of the most aggressive OMO operations of the year, with N3.692 trillion accepted compared with N1.689 trillion on June 8.
Earlier, between May 4 and May 12, the CBN conducted three OMO auction sessions that collectively generated N5.63 trillion in successful subscriptions from investors, reflecting sustained appetite for high-yield CBN instruments.
On May 29, the apex bank absorbed another N1.945 trillion through two OMO instruments after receiving subscriptions worth N1.952 trillion, demonstrating continued investor demand for longer-dated securities.
The June 8 auction follows a broader pattern of aggressive liquidity sterilization by the CBN. The continued oversubscription of OMO bills suggests that excess liquidity remains abundant within the banking system despite repeated liquidity mop-up operations by monetary
