CBN mops up ₦4.74 trillion via OMO auctions in two days

The Central Bank of Nigeria absorbed approximately ₦4.74 trillion from the financial system through a series of Open Market Operations auctions conducted on June 22 and 23, 2026, in what marks one of the most aggressive short-term liquidity sterilisation exercises carried out by the apex bank this year.

Across the three auctions held over the two-day window, total investor subscriptions reached approximately ₦4.8 trillion against an offer size of ₦1.2 trillion, meaning the instruments were oversubscribed by around 300 per cent with demand running at roughly four times the amount the CBN had made available. The apex bank accepted nearly all valid bids, rejecting only about ₦72.81 billion in the process.

The scale of investor participation signals continued strong appetite for high-yielding government securities at a time when the CBN has maintained an aggressive monetary tightening stance. Fixed income instruments, including OMO bills, have remained attractive to both local and foreign portfolio investors seeking predictable returns in a high-interest-rate environment.

The liquidity withdrawal forms part of a broader CBN strategy to manage an anticipated injection of approximately ₦10.90 trillion into the financial system during the month of June.

By mopping up a significant portion of that expected inflow, the central bank aims to prevent excess liquidity from stoking inflationary pressure or destabilising the foreign exchange market, both of which remain key policy concerns.

The CBN has deployed OMO auctions with increasing frequency in recent months as it works to keep interbank lending rates elevated and anchor inflation expectations, even as debate continues among analysts over the pace and duration of the current tightening cycle.