The amount represents a significant increase from the N24.2 trillion recorded during the corresponding period in 2025. Total subscriptions also climbed to N121.51 trillion, up from N47.34 trillion a year earlier, reflecting stronger investor appetite for the instruments.
The CBN’s revised OMO participation rules have also contributed to the increased demand by allowing individuals, companies and non bank financial institutions to participate through deposit money banks.
According to CBN data, the apex bank withdrew N17.5 trillion from the financial system through successful OMO allotments in September 2026, its highest monthly total so far this year. The bank offered N30.3 trillion worth of OMO bills between January and October, compared with N13.84 trillion during the same period in 2025.
Market analysts say the surge in issuance reflects the CBN’s efforts to manage excess liquidity and support its broader monetary policy objectives. The development has also intensified competition between fixed income investments and other asset classes, including equities.
David Adonri, managing director of Highcap Securities Limited, explained that the central bank increases its OMO operations when excess funds in the financial system threaten its liquidity management objectives.
He noted that OMO instruments help the CBN withdraw money from the banking system when liquidity is excessive and allow funds to return to the market when conditions become tighter.
Adonri also highlighted the challenge of balancing economic expansion with the need to control inflation and exchange rate instability. While Nigeria’s ambition to build a $1 trillion economy requires adequate liquidity to support business activity, excessive money supply can create economic pressures, he said.
The CBN uses OMO to regulate liquidity by buying or selling short term securities. Selling these instruments withdraws funds from the financial system, while buying securities can inject money back into the market.
Investor interest has strengthened since the CBN announced its revised participation framework on August 12, 2026. With yields reportedly ranging between 19 and 20 per cent at some points in the market, the securities have become attractive to investors seeking relatively predictable returns.
Analysts at Cordros Securities Limited said the policy change was primarily designed to absorb excess naira liquidity. Although opening the OMO market to more investors represents a move towards broader market access, the firm argued that its main practical effect would be to help the CBN manage liquidity and improve the transmission of monetary policy.
The strong demand has continued into October. During an auction that month, the CBN offered N2 trillion in OMO bills but received subscriptions of N2.73 trillion. It subsequently allotted N2.63 trillion.
Stop rates settled at 17.63 per cent for the 138 day instruments and 17.14 per cent for the 180 day bills. The sustained demand suggests that investors remain interested in the securities despite the substantial funds already withdrawn from the financial system.
In a circular dated August 12, 2026, Okey Umeano, acting director of the CBN’s Financial Markets Department, announced that eligible investors could participate in both the primary and secondary OMO markets through deposit money banks.
Under the revised arrangement, individuals, corporate organisations and non bank financial institutions can submit bids and settle transactions through their banks, expanding access beyond the institutional investors that previously dominated the market.
The circular also addressed restrictions affecting banks’ access to the CBN’s Discount Window, a facility that provides short term liquidity to eligible financial institutions. While the revised framework eased certain restrictions linked to participation in foreign exchange and government securities markets, banks remain subject to the rule preventing them from accessing the Discount Window and participating in OMO auctions on the same day.
The wider availability of OMO bills could have significant implications for Nigeria’s financial markets. With investors able to access attractive fixed income returns through their banks, some funds that might otherwise have gone into equities could shift towards government and central bank related securities.
For the CBN, the growing demand offers another channel for withdrawing excess naira liquidity and pursuing its monetary policy objectives. However, the competition for investment funds could also influence activity in the stock market and shape how investors allocate their money in the months ahead.
