CBN’s 20 Percent OMO Yield Keeps Investors Hooked As Demand Hits ₦4.93trn

• Investors submitted ₦4.93trn for just ₦600bn of OMO bills, underscoring the strong appetite for CBN’s high-yielding securities. The auction was oversubscribed by more than eight times.

• The 138-day OMO bill attracted ₦3.66trn in bids against ₦300bn offered, with the CBN allotting ₦2.15trn at a 20.01 percent stop rate.

• OMO yields remain significantly above comparable Treasury Bills, creating a strong incentive for investors to shift funds into the CBN’s sterilisation instruments.

August 14, () — Investors continued to pile into the Central Bank of Nigeria’s (CBN) Open Market Operations (OMO) bills on Thursday, submitting ₦4.93 trillion in bids for securities worth just ₦600 billion as the apex bank offered yields around 20 percent.

The auction, conducted on August 13, 2026, featured 103-day and 138-day OMO bills, with ₦300 billion offered for each tenor, according to CBN auction results.

Despite the limited offer, the CBN allotted ₦2.60 trillion across both instruments, more than four times the amount initially advertised.

The strong demand highlights the continued attraction of OMO securities in Nigeria’s high-interest-rate environment, particularly as their yields remain well above those available on comparable Treasury Bills.

Investors favour longer-tenor OMO bill

The 103-day bill, maturing on November 24, 2026, attracted ₦1.27 trillion in subscriptions against ₦300 billion offered, representing more than four times the amount available.

The CBN allotted ₦450 billion, with bid rates ranging from 19.90 percent to 20.46 percent and a stop rate of 20.39 percent.

Demand was considerably stronger for the longer 138-day instrument, which attracted ₦3.66 trillion in bids against another ₦300 billion offer.

The CBN allotted ₦2.15 trillion at a stop rate of 20.01 percent, with bids ranging from 19.79 percent to 20.10 percent.

The 138-day bill is scheduled to mature on December 29, 2026.

Despite having a longer maturity, the 138-day instrument cleared at a lower stop rate than the 103-day bill, suggesting investors were willing to accept slightly lower rates for the longer paper amid strong demand.

OMO yields remain ahead of T-bills

The latest auction further widens the yield advantage enjoyed by OMO securities over comparable Treasury Bills.

The 103-day OMO bill’s 20.39 percent stop rate is about 409 basis points above the 16.30 percent stop rate on the 91-day Treasury Bill, while the 138-day OMO rate of 20.01 percent is about 351 basis points above the 182-day Treasury Bill rate of 16.50 percent.

The gap could increasingly influence where investors and financial institutions place their funds, particularly as OMO securities become accessible to a broader pool of eligible investors through banks.

The stronger returns could also put pressure on banks to raise deposit rates to retain funds that investors may otherwise redirect into OMO instruments.

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CBN balances liquidity management

The heavy subscription comes despite the CBN’s aggressive liquidity management operations in recent weeks.

The latest auction follows a ₦5.21 trillion net liquidity injection into the banking system over the preceding week, including a ₦2.48 trillion OMO repayment on August 11.

Before that, the CBN had mopped up ₦4.69 trillion through OMO auctions on August 3 and 4, while more than ₦7 trillion was reportedly absorbed through OMO operations in July.

The continued appetite for OMO bills despite these large liquidity movements suggests that substantial funds remain available within the financial system for high-yielding instruments.

With OMO stop rates now around 20 percent, the securities remain highly attractive to investors seeking relatively high returns from government-backed instruments.

The sustained demand also reinforces the CBN’s role in managing excess liquidity while offering investors an alternative to lower-yielding fixed-income securities.