The Central Bank of Nigeria raised ₦1.008 trillion at its OMO auction on Friday, April 25, 2025, after strong investor demand led to a 102% oversubscription.
Initially offering ₦500 billion across two maturities, the auction attracted almost ₦1.4 trillion in total bids, as investors sought high-yield government instruments amid rising inflation and an expanding money supply.
This move affirms the CBN’s aggressive monetary tightening stance, aimed at mopping up excess liquidity and cooling inflationary pressures that have persisted despite elevated interest rates and a record-high cash reserve ratio.
The 319-day OMO bill maturing on March 10, 2026, was the most sought-after instrument at the auction. It attracted total subscriptions of ₦1.062 trillion, more than four times the Central Bank’s offer of ₦250 billion.
The CBN ultimately allotted ₦688.30 billion at a stop rate of 22.73%, with bid rates ranging from 20.39% to 23.75%.
The demand surge reflects investor expectations that high interest rates will persist, prompting a move to lock in attractive yields for the longer term.
In comparison, the 298-day OMO bill maturing on February 17, 2026, also recorded strong demand, attracting bids worth ₦329.54 billion against the ₦250 billion on offer.
The CBN allotted ₦319.54 billion at a stop rate of 22.37%, with bid rates ranging from 20.45% to 23.75%.
The OMO auction took place against the backdrop of a sharp rise in Nigeria’s broad money supply, which continues to undermine the CBN’s liquidity-tightening measures, including the 50% cash reserve ratio —the highest in the world.
According to data released by the CBN, M3 grew to N114.22 trillion in March 2025, marking a 24% year-on-year increase from N92.19 trillion in March 2024.
