The Central Bank of Nigeria (CBN) withdrew about N7.2 trillion from the financial system through Open Market Operations (OMO) auctions between July 1 and July 31 as part of efforts to reduce excess liquidity and keep inflation under control.
OMO auctions are mainly open to commercial banks and qualified foreign portfolio investors, allowing the apex bank to manage the amount of money circulating in the economy.
The move comes as Nigeria’s headline inflation rate eased slightly to 15.91 per cent in June 2026, down from 15.93 per cent in May, according to the National Bureau of Statistics (NBS).
The amount mopped up in July represents a 48.6 per cent decline compared to N13.96 trillion withdrawn in June. While the CBN conducted seven OMO auctions in June, it held only three auctions in July.
Records show that the June auctions took place on June 2, 8, 11, 22, 23, 29 and 30, with the CBN offering a total of N4.2 trillion but receiving bids worth N15.27 trillion. It eventually allotted N13.96 trillion, accepting more than 91 per cent of the bids submitted.
The June 2 auction attracted the highest demand, with subscriptions reaching N2.15 trillion, out of which N2.01 trillion was allotted.
The weakest demand in June came on June 8, when bids stood at N1.73 trillion, with N1.51 trillion allotted. The auctions held on June 29 and 30 also attracted strong demand, with June 30 recording subscriptions more than three times the amount offered.
Overall, June’s auctions were oversubscribed by an average of 3.16 times.
In July, the CBN offered N600 billion at each of the three auctions, making a total offer of N1.8 trillion. However, investor demand remained strong, with subscriptions averaging about four times the amount offered.
The biggest auction took place on July 28, when the CBN allotted N3.5 trillion, making it the largest single OMO sale recorded across both June and July.
The 127-day OMO bill remained the most sought-after instrument during the period. On July 13 alone, it attracted bids worth N1.854 trillion.
Stop rates during the two months ranged from 20.39 per cent to 22.65 per cent, with shorter-term instruments generally attracting higher yields than longer-term ones.
Although July’s total mop-up was lower than June’s, June remains the month with the highest volume of OMO sterilisation carried out by the CBN so far in 2026.
Explaining its monetary policy decisions, the CBN noted that inflation had risen slightly from 15.38 per cent in March to 15.69 per cent in April, before increasing further to 15.93 per cent in May.
The bank attributed the inflationary pressure mainly to rising food prices, energy costs, transportation expenses and logistics.
However, the apex bank said underlying indicators show that inflationary pressures are gradually easing. It noted that month-on-month inflation has slowed, core inflation has moderated, and the 12-month average inflation rate has continued to decline, falling to 19.16 per cent in April 2026 for the sixth consecutive month.
According to the CBN, recent reforms, including foreign exchange market reforms, tighter monetary policy, fiscal consolidation and stronger monetary policy transmission, have improved Nigeria’s ability to withstand external shocks, reducing the impact of global commodity and energy price increases on domestic inflation.
