The Central Bank of Nigeria (CBN) raised N2.087 trillion last week through Open Market Operations (OMO) and Treasury bills, continuing its efforts to manage financial system liquidity. The funds were secured via two primary market auctions.
There was strong investor demand for OMO bills in spite of the limited liquidity. The CBN auctioned N600 billion in OMO bills early in the week, with the 351-day and 365-day tenors being split equally. With a bid-to-offer ratio of 2.6x and a total of N1.56 trillion in subscriptions, the auction demonstrated robust investor interest.
The apex bank allotted the full N600 billion offered, with stop rates for the 351-day bills settling at 23.95%, down from 24.28% at the previous auction. Similarly, 361-day bills were priced at 23.98%, marking a decline from the previous stop rate of 24.28%.
Treasury Bills Attract Significant Demand
Later in the week, the CBN, through the Debt Management Office (DMO), offered N271.71 billion in Treasury bills at the primary market auction. The issuance was distributed across three maturities: N10.84 billion for 91-day bills, N8.36 billion for 182-day bills, and N256.51 billion for 364-day bills.
Investor demand remained robust, with total subscriptions reaching N907.85 billion, resulting in a bid-to-offer ratio of 3.3x. While this marked a decline from the previous auction’s bid-to-offer ratio of 4.4x, it still reflected strong interest.
With N8.80 billion going to the 91-day bills, N7.03 billion to the 182-day bills, and N512 billion to the 364-day bills, the DMO distributed N527.84 billion among maturities. While the stop rate for 364-day bills dropped 13 basis points to 22.80%, the stop rates for 91-day and 182-day bills stayed constant at 18.00% and 18.50%, respectively.
