Kayode Tokede
On the again of enticing yields, the Central Bank of Nigeria (CBN) raised N95.7 trillion by way of Open Market Operations (OMO) devices in 10 months of 2026. This represents about 295.36 per cent improve when in comparison with N242 trillion in 10 months of 2025.
Aside from the enticing yields, which attracted N121.51 trillion in complete subscription from N47.34 trillion in 2025, the CBN revised coverage on OMO additionally boosted particular person buyers participation this yr.
According to CBN information, N17.5 trillion complete profitable quantity mopped up in September 2026 was the highest this yr, influenced by a framework that enables people, corporates and non-bank monetary establishments to take part in the OMO instrument.
The complete quantity provided by CBN in 10 months of 2026 stood at N30.3 trillion, which is 119.01 per cent development when in comparison with N13.84 trillion complete quantity provided in 10 months of 2025.
Capital market analysts imagine the surge displays each liquidity pressures and broader financial coverage targets, with implications for investor behaviour and monetary stability.
Managing Director, Highcap (*10*) Limited,, Mr. David Adonri defined that the surge in OMO issuance displays durations of extra liquidity, prompting the CBN to accentuate its mop-up operations.
“OMO is used to stabilise liquidity. When there is too much money in the system, the CBN withdraws it. When liquidity tightens, it allows funds to flow back,” he stated.
He additionally highlighted a coverage stress between development ambitions and financial tightening.
“A $1 trillion economy requires liquidity, but too much liquidity fuels inflation and exchange rate instability. The CBN is balancing these competing priorities,” he added.
The CBN conducts OMO to handle day-to-day liquidity in the banking system. OMO includes the CBN promoting or shopping for short-term securities to both cut back extra liquidity or inject money as wanted. The CBN points its personal OMO payments to banks/people or buys again beforehand issued securities.
The CBN’s choice to widen entry to its OMO market, probably rising competitors between inventory market and high-yielding fixed-income devices for buyers’.
Since the coverage was introduced on August 12, 2026, the OMO instrument has seen an uptick in subscriptions as buyers take positions in threat free devices that provide yields over 19 to 20 per cent.
Analysts at Cordros (*10*) Limited stated the core goal of the CBN choices is the sterilisation of home naira liquidity.
“As a result, the reopening of the OMO market to domestic investors is a market liberalization policy on its face, but a liquidity sterilisation measure in practice. In summary, we expect these decisions to result in systemic reconfiguration of Nigeria’s financial markets, including helping the CBN achieve its monetary policy objectives through more efficient transmission,” the agency added in a report.
The CBN up to now in October 2026 provided to lift N2.00 trillion in OMO payments, that attracted N2.73 trillion demand, and finally allotted N2.63 trillion. Stop charges settled at 17.63 per cent and 17.14 per cent for the 138 Days and 180 Days tenors, respectively.
The sustained demand recorded at successive auctions, regardless of the substantial liquidity already withdrawn from the monetary system, means that liquidity circumstances stay sturdy sufficient to assist continued participation in OMO devices.
The Acting Director, Financial Markets Department of the CBN, Mr. Okey Umeano, had introduced in a round dated August 12, 2026, that participation in each the first and secondary OMO markets can be open to all eligible buyers by way of Deposit Money Banks (DMBs).
“OMO participation (primary and secondary markets) shall be open to all eligible investors through Deposit Money Banks (DMBs). Eligible investors include individuals, corporates and non-bank financial institutions. DMBs shall continue to submit bids and settle transactions on behalf of their customers,” the round acknowledged.
Under the earlier framework, entry to the CBN’s Discount Window was restricted for banks that participated in the Nigerian Foreign Exchange Market (NFEM) or bought authorities securities at main auctions. The restriction on accessing the Discount Window on the identical day as collaborating in OMO operations additionally utilized.
The round removes the restrictions, permitting banks to take part in the markets with out dropping similar day entry to the CBN’s liquidity facility. However, the restriction on utilizing the Discount Window and collaborating in OMO auctions on the identical day stays in place.
With OMO payments now accessible to people and different eligible buyers by way of banks, quite than being largely restricted to institutional market contributors, analysts imagine the coverage may divert some funds from the Nigerian inventory market to the fixed-income market, notably given the enticing yields on supply.
