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CBN sells N4.69 trillion OMO bills as N2.5 trillion offer meets record demand
The CBN sold about N4.69 trillion in OMO bills on September 29, nearly double its N2.5 trillion offer, as N2.43 trillion matured same day. What the mop-up means after the MPR cut.
Part 4 of 4
The Central Bank of Nigeria sold approximately N4.686 trillion in Open Market Operations bills at its September 29, 2026 auction, nearly double the N2.5 trillion originally offered and almost twice the N2.433 trillion OMO repayment maturing the same day, according to Nairametrics. It is the largest single session mop-up of the month and the clearest signal yet that liquidity control still outranks cheaper credit, even after the MPR cut to 23 per cent.
The session closes a September in which demand for CBN paper kept breaking records. ThisDay put total September OMO bids at N20.6 trillion, the highest monthly total of the year.
The offer and the result
According to the CBN auction notice summarised by Nairametrics, the September 29 offer spanned three tenors with bidding closing at 10:30 a.m.:
- 147 day: N500 billion offered, maturing February 23, 2027.
- 182 day: N1 trillion offered, maturing March 30, 2027.
- 266 day: N1 trillion offered, maturing June 22, 2027.
Total offered: N2.5 trillion. Total maturing same day: N2.433 trillion, a near one for one match between fresh supply and the liquidity injection. Total sold: about N4.686 trillion, as banks parked more than N6.2 trillion at the Standing Deposit Facility ahead of the auction, according to CBN financial data cited by Nairametrics.
For the mechanics of the corridor and reserve ratios behind these operations, see our MPR and CRR explainer and the September MPR cut note.
A month of heavy two way flows
September was exceptional on both sides of the ledger:
- Week ended September 25: net system liquidity strengthened to N5.98 trillion from N2.86 trillion the prior week, according to Nairametrics analysis of CBN data. Banks placed more than N7 trillion at the Standing Deposit Facility.
- September 22: about N2.3 trillion in OMO repayments flowed back into the system.
- September 24 OMO: N1 trillion offered across 68 day, 152 day and 180 day maturities drew N6.1 trillion in bids, with N2.3 trillion allotted. The 152 day cleared at 17.29 per cent and the 180 day at 16.99 per cent, with no allotment on the 68 day, according to Nairametrics.
- First four September OMO auctions: about N20.58 trillion in bids against N3.9 trillion offered, with N12.823 trillion allotted, according to Nairametrics on September 28.
- Full month repayments: the CBN returned N10.89 trillion to the system through maturing OMO bills in September, according to Punch on October 5.
- Projected peak: with N2.43 trillion in OMO maturities plus N164 billion in bond coupons, net liquidity could reach about N8.57 trillion if fully retained, according to Nairametrics on September 27.
One structural detail widened the bid pool. In August the CBN allowed individuals, companies and non bank institutions to access OMO bills through commercial banks, adding a new leg of demand to the usual bank and fund bidding, according to the Rio Times summary of Nairametrics data.
What it meant for stocks
Banking stocks dragged the market lower on September 29 on profit-taking, with the ASI at 251,913.20 points and market capitalisation at N163.53 trillion heading into the month end session, according to Nairametrics daily data. Heavy OMO absorption tightens the cash banks hold for trading and lending, which tends to weigh on financials first.
The overnight rate banks charge each other stood at 20.77 per cent in the week to September 25, pressed against the 20 per cent Standing Deposit Facility floor of the new corridor.
What to watch
- October OMO calendar: whether the CBN keeps offering above maturities, which would extend net withdrawal, or lets cash sit and allows overnight rates to drift toward the 20 per cent deposit rate.
- September inflation: due from the NBS in mid October. A higher print would press the CBN toward more aggressive mop-ups.
- Fixed income convergence: whether OMO clearing levels near 17 per cent pull Treasury bill stops back up or follow them down toward 15.89 per cent.
- Bank earnings: Q3 reports will show how the 45 per cent CRR plus heavy sterilisation shaped net interest margins after the MPR reset.
Frequently asked questions
Frequently asked questions
How much did the CBN sell on September 29?
About N4.686 trillion, against a N2.5 trillion offer and N2.433 trillion maturing the same day, according to Nairametrics. That is nearly double the offer and almost double the maturing amount.
Why mop up cash right after cutting rates?
The cut reset the policy anchor to 23 per cent, but maturing bills keep pouring cash back into banks, with September repayments at N10.89 trillion per Punch. OMO sales absorb that surplus so the cut transmits as a lower anchor rather than a flood of excess liquidity.
Where do September totals stand?
About N20.58 trillion in bids against N3.9 trillion offered across the first four September OMO auctions, with N12.823 trillion allotted, per Nairametrics. ThisDay put full month bids at N20.6 trillion, the highest monthly total of 2026.
Verify: compare auction tenors and allotments in CBN government securities data on the Central Bank of Nigeria website.
