The Central Bank of Nigeria conducted three rounds of Open Market Operations auctions between May 4 and May 12, 2026, raking in a total of N5.63 trillion in successful subscriptions across 8 instruments spanning short, medium, and longer-dated tenors.

The OMO auction results analysed by Nairametrics show that the apex bank offered a combined N1.8 trillion across all three sessions but allotted over three times that amount, as investor appetite for high-yield OMO paper remained robust.

The two-week exercise, conducted in the first, second, and third weeks of May, however, saw CBN repay N4.78 trillion in two tranches, leaving net issuance of N850 billion.

The three auction sessions recorded across May 4, May 7, and May 12 each offered N600 billion across tenors but were overwhelmed by investor demand in every instance.

On May 4, 2026, during the First Week auction with 2 tenors, the 8-day bill attracted N1.065 trillion in subscriptions, fully allotted at a stop rate of 21.90% — about three times higher subscription than N300 billion offer.

The 134-day bill drew N640.1 billion in bids, with N630.1 billion allotted at 19.97%, with bids ranging from 19.86% to 20.49%. Combined session total reached N1.7 trillion.

On May 7, 2026, in the Second Week auction with 3 tenors, the 33-day bill attracted N674.4 billion in bids, with N664.4 billion allotted at 21.57%.

The 75-day bill recorded N38 billion in subscriptions, fully allotted at 20.63%. The 96-day bill drew N923.17 billion in total bids, with N893.17 billion successfully allotted at 20.45%. Combined session total stood at N1.60 trillion.

On May 12, 2026, during the Third Week auction with 3 tenors, the 35-day bill recorded N761 billion in subscriptions but saw only N25 billion allotted at 21.54% — the sharpest underallotment of the period, suggesting deliberate CBN restraint at the short end having already allotted N664.4 billion in 33-day bill of May 7 auction.

The 70-day bill drew N111 billion, with N91 billion allotted at 20.70%.

The 126-day bill was the standout of the entire two-week period: against a N200 billion offer, it attracted N111 billion in total subscriptions but recorded a remarkable N1.454 trillion in successful allotment, about 7 times excess allotment, suggesting strong institutional demand for longer-dated paper at 20.10%. Combined session total reached N1.57 trillion.

Grand total OMO sales across the two-week period stood at N5.63 trillion.

The 126-day bill on May 12 generated the single largest allotment of the entire fortnight at N1.45 trillion, confirming a sustained investor preference for longer-dated OMO instruments at current yield levels.

This trend is consistent with the pattern observed at the April 21 auction where the 140-day bill attracted N1.25 trillion in subscriptions.

Conversely, the sharp underallotment on the 35-day bill on May 12 — where N761 billion was subscribed but only N25 billion allotted — points to deliberate CBN rationing at the short end, likely to manage the interest rate burden on short term instruments.

Stop rates across the two weeks held within a narrow band: 21.90% at the very short end declining to 19.97% at the 134-day tenor.

N4.78 trillion repayments were recorded across two sessions; N2.07 trillion in OMO repayments was credited on May 12 and N2.71 trillion on May 5, leaving N850 billion over the fortnight to circulate in the system.

Despite this scale of mop-up, the Standing Deposit Facility largely remained above N4.5 trillion daily across the review period except for May 5, confirming that excess liquidity in the banking system continues to substantially outpace the CBN’s sterilisation capacity.

The May OMO auction results continue a pattern of aggressive liquidity withdrawal that has defined the CBN’s monetary stance throughout 2026, with OMO bills emerging as the dominant instrument of choice.

Total OMO sales rose by approximately 426% year-on-year, climbing from N3.57 trillion in Q1 2025 to N18.79 trillion in Q1 2026 alone, with the CBN’s financial data confirming a significantly more active monetary stance compared to the same period in 2025.

Within the first four months of 2026, cumulative OMO sales reached about N30.12 trillion — a figure that already matches Nigeria’s full-year 2025 total, reflecting an unprecedented scale of intervention driven partly by pre-election liquidity pressures.

At its April 21 OMO auction alone, the CBN raised N1.92 trillion with stop rates climbing as high as 21.90%, with total subscriptions of N2.22 trillion significantly exceeding the N600 billion initially offered — a pattern that the May auctions have since replicated and intensified.

While necessary for price stability, sustained large-scale OMO mop-ups increase borrowing costs and could slow credit growth in the real economy — a risk analysts say the CBN must weigh carefully as it balances inflation control with economic recovery momentum.