The Central Bank of Nigeria attracted N12.14 trillion in bids from investors in two Open Market Operations auctions held in the final week of September, showing strong demand for naira-denominated securities despite falling interest rates.
Investors submitted N5.74 trillion at the September 24 auction and another N6.40 trillion five days later. The CBN had offered a combined N3.4 trillion across the two auctions but eventually allotted about N6.94 trillion.
Demand remained strong even as yields declined. The 180-day instrument at the September 24 auction attracted N3.88 trillion against an offer of N450 billion. At the September 29 auction, a newly introduced 266-day bill drew N4.54 trillion against N1 trillion on offer.
The strong appetite came as the CBN continued using OMO sales to manage liquidity in the banking system. Across five OMO auctions in September, the apex bank sold about N17.51 trillion of securities, while N10.89 trillion of maturing bills was returned to investors, leaving a net liquidity withdrawal of roughly N6.62 trillion.
The September operations followed the CBN’s decision to cut the Monetary Policy Rate to 23 per cent at its September 21-22 meeting.
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