The Central Bank of Nigeria absorbed N1.945 trillion from the financial system through its Open Market Operations auction conducted on May 29, 2026, as part of efforts to sterilise excess liquidity ahead of an anticipated N3.35 trillion inflow from maturing OMO and Treasury Bills securities.

Nairametrics reported that results from the latest OMO auction revealed that investors submitted bids worth N1.952 trillion against a total offer size of N400 billion, highlighting strong investor appetite for short-term government securities despite the apex bank’s liquidity-tightening measures.

The latest auction was held just one week after the CBN carried out a significantly larger OMO sale on May 21, during which it allotted N3.47 trillion out of subscriptions worth N3.48 trillion. The two auctions combined resulted in the absorption of N5.42 trillion from the financial system within eight days.

The May 29 auction featured two OMO instruments and recorded substantial participation across both tenors.

Overall, the CBN offered N400 billion, received total subscriptions of N1.952 trillion and allotted N1.945 trillion.

For the 102-day OMO bill, the apex bank offered N200 billion but attracted subscriptions amounting to N1.727 trillion. It subsequently allotted N1.725 trillion at a stop rate of 20.37 per cent.

The 11-day OMO bill recorded subscriptions of N225 billion against an offer size of N200 billion. The CBN allotted N220 billion at a stop rate of 21.80 per cent.

No repayments were involved in the exercise, indicating that the auction was purely aimed at absorbing liquidity from the financial system.

Although the May 29 auction was smaller than the one conducted on May 21, investor demand remained exceptionally strong.

During the May 21 auction, the CBN offered N700 billion across three tenors but received subscriptions totalling N3.477 trillion. Total allotments stood at N3.47 trillion.

A key highlight of the earlier auction was the 33-day OMO bill, which attracted subscriptions of N1.525 trillion against an offer size of N300 billion and was fully allotted at a stop rate of 21.57 per cent.

Taken together, the two auctions absorbed N5.42 trillion from the banking system within a little over one week, underscoring the CBN’s commitment to tightening liquidity conditions as it continues efforts to manage inflation and stabilise the foreign exchange market.

Despite offering the lowest yield among the instruments available at the May 29 auction, the 102-day tenor emerged as the most attractive to investors, suggesting an increasing willingness among market participants to lock in returns for longer periods.

The aggressive liquidity mop-up exercise comes ahead of significant maturities expected to enter the financial system in the coming days.

Research analysts at Cowry Asset Management Limited projected that approximately N2.72 trillion in OMO bills and N631.46 billion in Treasury Bills would mature during the first week of June.

In the May 29 edition of the Cowry Weekly Financial Markets Review & Outlook, the analysts forecast total liquidity inflows of N3.35 trillion for the new week.

According to the analysts, these inflows are expected to exceed the planned N700 billion Treasury Bills auction scheduled for the first week of June, a development that could sustain robust liquidity levels in the financial system despite the recent sterilisation operations undertaken by the CBN.

The Cowry Asset analysts say the large maturity profile could support continued strong demand at upcoming fixed-income auctions, particularly if the apex bank maintains its current strategy of balancing liquidity injections from maturing instruments with periodic OMO sales aimed at controlling money supply and supporting naira stability.