Kayode Tokede
On the again of engaging yields, the Central Bank of Nigeria (CBN) raised N95.7 trillion by Open Market Operations (OMO) devices in 10 months of 2026. This represents about 295.36 per cent enhance when in comparison with N242 trillion in 10 months of 2025.
Aside from the engaging yields, which attracted N121.51 trillion in whole subscription from N47.34 trillion in 2025, the CBN revised coverage on OMO additionally boosted particular person traders participation this yr.
According to CBN knowledge, N17.5 trillion whole profitable quantity mopped up in September 2026 was the highest this yr, influenced by a framework that permits people, corporates and non-bank monetary establishments to take part in the OMO instrument.
The whole quantity supplied by CBN in 10 months of 2026 stood at N30.3 trillion, which is 119.01 per cent development when in comparison with N13.84 trillion whole quantity supplied in 10 months of 2025.
Capital market analysts imagine the surge displays each liquidity pressures and broader financial coverage targets, with implications for investor behaviour and monetary stability.
Managing Director, Highcap Securities Limited,, Mr. David Adonri defined that the surge in OMO issuance displays durations of extra liquidity, prompting the CBN to accentuate its mop-up operations.
“OMO is used to stabilise liquidity. When there is too much money in the system, the CBN withdraws it. When liquidity tightens, it allows funds to flow back,” he mentioned.
He additionally highlighted a coverage pressure between development ambitions and financial tightening.
“A $1 trillion economy requires liquidity, but too much liquidity fuels inflation and exchange rate instability. The CBN is balancing these competing priorities,” he added.
The CBN conducts OMO to handle day-to-day liquidity in the banking system. OMO includes the CBN promoting or shopping for short-term securities to both cut back extra liquidity or inject money as wanted. The CBN points its personal OMO payments to banks/people or buys again beforehand issued securities.
The CBN’s determination to widen entry to its OMO market, doubtlessly rising competitors between inventory market and high-yielding fixed-income devices for traders’.
Since the coverage was introduced on August 12, 2026, the OMO instrument has seen an uptick in subscriptions as traders take positions in threat free devices that provide yields over 19 to 20 per cent.
Analysts at Cordros Securities Limited mentioned the core goal of the CBN selections is the sterilisation of home naira liquidity.
“As a result, the reopening of the OMO market to domestic investors is a market liberalization policy on its face, but a liquidity sterilisation measure in practice. In summary, we expect these decisions to result in systemic reconfiguration of Nigeria’s financial markets, including helping the CBN achieve its monetary policy objectives through more efficient transmission,” the agency added in a report.
The CBN to date in October 2026 supplied to lift N2.00 trillion in OMO payments, that attracted N2.73 trillion demand, and in the end allotted N2.63 trillion. Stop charges settled at 17.63 per cent and 17.14 per cent for the 138 Days and 180 Days tenors, respectively.
The sustained demand recorded at successive auctions, regardless of the substantial liquidity already withdrawn from the monetary system, means that liquidity situations stay sturdy sufficient to help continued participation in OMO devices.
The Acting Director, Financial Markets Department of the CBN, Mr. Okey Umeano, had introduced in a round dated August 12, 2026, that participation in each the first and secondary OMO markets could be open to all eligible traders by Deposit Money Banks (DMBs).
“OMO participation (primary and secondary markets) shall be open to all eligible investors through Deposit Money Banks (DMBs). Eligible investors include individuals, corporates and non-bank financial institutions. DMBs shall continue to submit bids and settle transactions on behalf of their customers,” the round said.
Under the earlier framework, entry to the CBN’s Discount Window was restricted for banks that participated in the Nigerian Foreign Exchange Market (NFEM) or bought authorities securities at main auctions. The restriction on accessing the Discount Window on the identical day as collaborating in OMO operations additionally utilized.
The round removes the restrictions, permitting banks to take part in the markets with out shedding identical day entry to the CBN’s liquidity facility. However, the restriction on utilizing the Discount Window and collaborating in OMO auctions on the identical day stays in place.
With OMO payments now accessible to people and different eligible traders by banks, somewhat than being largely restricted to institutional market contributors, analysts imagine the coverage might divert some funds from the Nigerian inventory market to the fixed-income market, notably given the engaging yields on provide.
