Nigeria’s Open Market Operation (OMO) bills have attracted strong interest from retail and corporate investors, with total subscriptions reaching ₦5.7 trillion, significantly exceeding the Central Bank of Nigeria’s (CBN) initial offer of ₦1.5 trillion.
The strong demand reflects sustained investor interest in government-backed money market instruments amid efforts by the apex bank to manage liquidity in the financial system.
According to CardinalStone Securities Limited, the CBN offered OMO bills across three maturities of 179 days, 270 days and 361 days at its latest auction.
However, subscriptions reached ₦5.7 trillion, prompting the central bank to allot approximately ₦2.7 trillion across the three tenors.
The stop rates were recorded at 17.25 per cent for the 179-day instrument, 16.54 per cent for the 270-day bill and 15.74 per cent for the 361-day instrument.
The strong appetite for OMO securities was also evident at the November 3, 2026 auction, where investors submitted bids worth ₦3.52 trillion against an initial offer of ₦1.5 trillion, representing a bid-to-cover ratio of 2.35 times.
Demand was particularly concentrated in the 133-day instrument, which attracted ₦2.39 trillion, representing 67.8 per cent of total bids.
The CBN subsequently allotted approximately ₦2.95 trillion, exceeding its initial offer by 96.3 per cent. The 133-day bill accounted for ₦2.36 trillion of the total allotment.
The 119-day and 126-day instruments received allotments of ₦339.82 billion and ₦247.31 billion, respectively.
Stop rates for the three instruments settled at 17.77 per cent, 17.71 per cent and 17.67 per cent.
Meanwhile, activity in the secondary OMO market remained relatively subdued, although securities across different maturities continued to attract investor interest.
Herwood Securities Limited quoted the March 2, March 9 and March 16 OMO bills at 17.50 per cent. The April 20 instrument was offered at 16.90 per cent, while the June 22 bill was quoted at 16.15 per cent.
The money market also opened with a credit balance of ₦8.29 trillion, compared with ₦7.58 trillion previously, representing an increase of ₦710 billion. Repayment inflows from matured instruments contributed to the improved liquidity position.
Overall, market activity remained relatively strong across different maturities, with OMO bills continuing to offer higher yields than Nigerian Treasury Bills (NTBs), particularly at the shorter end of the yield curve.
The development highlights continued investor demand for high-yield money market instruments as the CBN maintains its liquidity management strategy.
