The Central Bank of Nigeria (CBN) has raised a total of N1.008 trillion at its Open Market Operations (OMO) auction held on Friday, April 25, 2025.
The apex bank was able to raise such an amount following investors’ high demand that led to oversubscription of 102 per cent.
The auction, which offered N500 billion across two maturities, attracted total bids of nearly N1.4 trillion as investors took advantage of high-yield in government instruments amid rising inflation and expanding money supply.
The CBN aggressive monetary tightening stance aimed at mopping up excess liquidity and reducing inflationary pressures that have persisted over time despite elevated interest rates.
The instrument that received higher demand at the auction was the 319-day OMO bill, maturing on March 10, 2026. It recorded a total subscription of N1.062 trillion, which is more than four times N250 billion offered by the CBN.
But the apex bank allotted N688.30 billion at a stop rate of 22.73 per cent, with bid rates ranging between 20.39 per cent and 23.75 per cent.
The surge in demand reflects investor expectations that high interest rates will persist, prompting a move to lock in attractive yields for the longer term.
Also the 298-day bill, maturing on February 17, 2026, recorded positive performance as It received bids amounting to N329.54 billion against the total of N250 billion offered by the CBN.
The CBN allotted N319.54 billion at a stop rate of 22.37 per cent, with bid rates falling between 20.45 per cent and 23.75 per cent.
In total, the CBN raised N1.008 trillion, more than double its initial offer, and a clear sign of the liquidity that remains available in the financial system despite policy tightening.
The OMO auction comes at a time when Nigeria’s broad money supply (M3) continues to rise sharply, undermining the CBN’s efforts to reduce liquidity through tools like the 50 per cent cash reserve ratio (CRR)—the highest in the world.