The Central Bank of Nigeria intensified its liquidity control efforts in May after attracting massive investor interest in Open Market Operations bills, with total sales hitting N5.63 trillion within two weeks.
The auctions, conducted between May 4 and May 12, recorded strong demand from investors seeking attractive returns on government securities.
Although the apex bank initially offered N1.8 trillion across different maturities, subscriptions far exceeded expectations as financial institutions and investors poured funds into the high yielding instruments.
The News Chronicle reports that the biggest attention came from the 126 day OMO bill auctioned on May 12. Despite a N200 billion offer, the instrument ended with an allotment of about N1.45 trillion, highlighting growing appetite for longer term securities amid prevailing interest rates.
Short term bills also attracted heavy subscriptions, though the CBN appeared cautious in allotting some of them as part of efforts to manage borrowing costs.
Analysts believe the aggressive OMO sales reflect the central bank’s continued push to reduce excess liquidity and stabilise inflation pressures in the economy.
However, concerns remain that sustained high interest rates and large liquidity mop ups could increase borrowing costs for businesses and slow credit growth in the real sector.
Recent figures also show Nigeria’s OMO market activity in 2026 has already reached levels close to the country’s entire 2025 performance.
