CBN RETURNS N10.9TN TO FINANCIAL SYSTEM THROUGH OMO MATURITIES

The Central Bank of Nigeria returned about N10.89tn to investors in September through the repayment of maturing Open Market Operations securities, even as it sold N17.51tn in fresh OMO bills.

The repayments represented about 62 per cent of the CBN’s new OMO sales during the month, helping to offset part of the liquidity withdrawn through the fresh auctions.

The apex bank conducted five major OMO auctions during the month, while five batches of previously issued securities matured.

The largest repayments included N3.07tn on September 8, N3.06tn on September 15, N2.27tn on September 22 and N2.43tn on September 29.

Despite the repayments, the CBN recorded a net liquidity withdrawal of about N6.62tn because new OMO sales exceeded the value of maturing securities.

Investor demand for the instruments remained strong, with total subscriptions across the five auctions reaching about N27tn, compared with N18.72tn recorded in August.

The CBN’s September operations highlight its continued use of OMO securities to manage liquidity in the banking system.