CBN soaks up N12.8tn in September OMO auctions as rates fall 170 bps
CBN allotted approximately N12.823 trillion at four Open Market Operations auctions in September 2026, while investors submitted N20.58 trillion in bids against just N3.9 trillion offered—demand of about 5.28 times the amount on offer. The stop rates on longer-tenor instruments fell sharply, dropping from 18.99% on September 1 to 17.29% by the September 24 auction, a 170-basis-point decline, with two-thirds of the drop occurring in the final week after the MPC cut the benchmark rate to 23%. In addition to OMOs, the CBN mopped up N20.96 trillion through OMO and Treasury Bills auctions in September alone, and closed its Q3 2026 NTB programme with N8.14 trillion allotted, 40.3% above the original target. The liquidity-absorbing drive reflects the CBN's effort to manage excess naira in the banking system, which has kept banks flush with cash for much of the year. For investors, the strong demand despite lower yields signals continued appetite for naira-denominated securities, while borrowers may benefit from lower financing costs as rates trend down. Will you adjust your fixed-income portfolio to capture the higher allotment volumes, or monitor the falling OMO rates for cheaper loan pricing in the coming months?