CBN Absorbs ₦1.95 Trn in Latest OMO Auction Ahead of ₦3.35 Trn Maturities

The Central Bank of Nigeria intensified efforts to drain excess liquidity by absorbing ₦1.945 trillion in its May 29 Open Market Operation auction. Investors bid ₦1.952 trillion against a ₦400 billion offer, with the CBN allotting nearly the full amount across two bills. The 102-day OMO bill topped demand, drawing ₦1.727 trillion in bids and allotted at 20.37%. An 11-day bill saw ₦225 billion in bids, with ₦220 billion allotted at 21.80%. This follows a larger mop-up of ₦3.47 trillion on May 21, taking total withdrawals to ₦5.42 trillion in eight days. Analysts say the aggressive sterilisation strategy aims to rein in money-supply growth, curb inflationary pressures and support naira stability. Cowry Asset Management forecasts ₦3.35 trillion in OMO and Treasury bill maturities due in early June, likely keeping liquidity management central to upcoming policy moves.

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