The Central Bank of Nigeria (CBN) mopped up excess liquidity from the banking system on Wednesday, raising N1.06 trillion at its Treasury bills auction after the repayment of N2.21 trillion in maturing Open Market Operation (OMO) bills injected fresh cash into the financial system.
The auction, conducted on behalf of the federal government, saw the CBN allot N1.06 trillion across the three standard tenors, representing a 52 percent over-allotment above the initial offer of N700 billion, as investors flocked to lock in attractive yields on one-year government securities.
The liquidity injection from the OMO maturity significantly improved market conditions ahead of the auction. Banking system liquidity rose after the repayment of N2.21 trillion in OMO bills on July 7, 2026, with no immediate OMO auction conducted to sterilise the excess cash. Consequently, placements at the Standing Deposit Facility (SDF) jumped 87 percent to N4.60 trillion from N2.46 trillion, while
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