The Central Bank of Nigeria successfully raised N804.85 billion through its Open Market Operations auction on April 29, 2025, amid high investor demand driven by excess liquidity and elevated inflation expectations.

The auction saw N1.057 trillion in total subscriptions—an oversubscription of 111%—though slightly lower than the April 25 auction, where N1.008 trillion was raised from N1.391 trillion in bids.

In the latest auction, the CBN offered two long-tenor bills—329-day and 350-day, each N250 billion. Despite the equal offer size, investor preference leaned strongly toward the 350-day bill, reflecting a strategy to lock in higher yields for longer durations.

This demand pattern indicates confidence in Nigeria’s sovereign debt and expectations that interest rates will remain elevated over the medium term.

The 350-day OMO bill maturing on April 14, 2026, attracted strong investor demand with subscriptions totaling N923.60 billion, over three times the N250 billion offered. This reflects robust market liquidity and a clear preference for longer-term instruments. The CBN allotted N698.60 billion at a stop rate of 22.73%, with bid rates ranging from 22.4990% to 22.9700%.

This robust investor turnout mirrors the trend seen in the previous OMO auction held just four days earlier, where the 319-day instrument attracted N1.062 trillion in subscriptions—its highest for the year—and was allotted N688.30 billion at the same stop rate of 22.73%.

The consistency in demand for longer-dated bills reflects investor sentiment that the CBN will maintain its current hawkish stance for an extended period, as it seeks to combat inflation and stabilise the naira. Financial institutions, asset managers, and offshore players are therefore increasingly favouring long-term bills to lock in attractive real returns in anticipation of future rate moderation.

In contrast, the 329-day OMO bill maturing on March 24, 2026, saw relatively subdued demand, drawing N133.25 billion in subscriptions—just over 53% of the N250 billion on offer.

The CBN allotted N106.25 billion at a slightly lower stop rate of 22.69%, with bids ranging from 22.3200% to 22.8900%.

The weaker interest likely stems from its shorter tenor, as investors increasingly favour longer-dated instruments to lock in yields amid expectations that interest rates may soon peak before trending downward. Bid dynamics reinforce the market’s current strategy of stretching duration to maximise returns.

This auction builds on the strong momentum from the April 25, 2025 sale, where the CBN offered N500 billion across two maturities but raised a total of N1.008 trillion following a 102% oversubscription.

Investor demand was heavily skewed toward the 319-day bill, the longer maturity in that round, and this preference for longer tenors has clearly continued, as seen in the overwhelming interest in the 350-day instrument in the latest auction.