CBN raises over ₦1tn at OMO auction amid liquidity surge
On Friday, April 25, 2025, the Central Bank of Nigeria's OMO auction raised ₦1.008 trillion, with a 102% oversubscription due to significant investor demand.Initially offering ₦500 billion across two maturities, the auction received about ₦1.4 trillion in total bids, as investors sought high-yield government assets amid growing inflation and expanding money supply.
This action reinforces the CBN's aggressive monetary tightening strategy, which aims to absorb surplus liquidity and reduce inflationary pressures that have persisted despite high interest rates and a record-high cash reserve ratio.
The 319-day OMO bill maturing on March 10, 2026 was the most popular instrument during the auction. Total subscriptions reached ₦1.062 trillion, exceeding the Central Bank's offer of ₦250 billion by more than four times.
The CBN allocated ₦688.30 billion at a stop rate of 22.73%, with bid prices ranging from 20.39 to 23.75 percent.
The rise in demand underscores investor hopes that high interest rates will endure, driving a desire to lock in lucrative long-term yields.
In comparison, the 298-day OMO bill maturing on February 17, 2026, recorded high demand, collecting bids of ₦329.54 billion versus the ₦250 billion on offer.
The CBN allocated ₦319.54 billion at a stop rate of 22.37% and bid rates ranging from 20.45% to 23.75%.
The OMO auction took place against the backdrop of a substantial increase in Nigeria's broad money supply, which continues to undercut the CBN's liquidity-tightening policies, such as the world's highest cash reserve ratio of 50%.
According to CBN data, M3 increased to N114.22 trillion in March 2025, up 24% year on year from N92.19 trillion in March 2024.
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