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Investors placed a combined N4.93 trillion in bids at the Central Bank of Nigeria’s (CBN) latest Open Market Operations (OMO) auction, underscoring strong appetite for short-term government securities offering yields around the 20% mark.
The auction, conducted on Thursday, August 13, 2026, offered investors a total of N600 billion across two instruments with maturities of 103 and 138 days. Despite the relatively small offer size, the CBN ultimately allotted N2.60 trillion, more than four times the amount initially put up for sale.
138-Day Bill Attracts the Biggest Demand
The shorter-dated 103-day bill, which matures on November 24, 2026, received N1.268 trillion in subscriptions against an offer of N300 billion.
That represents demand of more than four times the amount available.
The CBN allotted N450 billion from the instrument, with submitted bid rates ranging between 19.90% and 20.46%. The stop rate was established at 20.39%.
Demand was substantially stronger for the 138-day bill, maturing on December 29, 2026.
The instrument attracted N3.658 trillion in bids, exceeding its N300 billion offer by more than 12 times. The apex bank subsequently allotted N2.154 trillion.
Bid rates for the longer-dated paper ranged from 19.79% to 20.10%, while its stop rate stood at 20.01%. Its true yield, however, was reported at 21.66%.
Investors Continue to Chase High Fixed-Income Returns
The scale of demand highlights the continued attractiveness of OMO securities among investors seeking relatively high returns in Nigeria’s fixed-income market.
Interestingly, the longer-dated instrument attracted substantially more demand while clearing at a lower stop rate than the shorter-term bill, suggesting that investors were willing to commit funds for longer in exchange for the prevailing yield opportunity.
The strong subscription also comes after weeks of significant liquidity management by the CBN, including aggressive mop-up operations followed by substantial liquidity injections into the financial system.
According to the auction data, the pattern of heavy demand and large allotments has become increasingly common in OMO auctions during 2026.
CBN Balances Liquidity Management With Market Demand
The latest auction demonstrates the CBN’s continuing use of OMO securities as a tool for managing liquidity within the banking system while providing investors with instruments to deploy excess funds.
With N4.93 trillion chasing N600 billion initially offered, the auction generated demand more than eight times the amount available.
The decision to allot N2.60 trillion, significantly above the original offer, also indicates the central bank’s willingness to absorb a substantial portion of available liquidity when investor demand is strong.
For investors, the sustained appetite for OMO bills reflects the search for attractive naira-denominated returns amid evolving monetary conditions.
For the CBN, meanwhile, the latest auction provides another avenue to manage system liquidity while testing how much investors are prepared to commit at current yield levels.
