CBN Raises Over N1 Trillion At Latest OMO Auction Amid Surging Inflation And Investor Demand

The Central Bank of Nigeria (CBN) successfully secured approximately N1.008 trillion during its most recent Open Market Operations (OMO) auction conducted on Friday, April 25, 2025.

Driven by robust investor interest, the auction witnessed an impressive oversubscription of 102%, reflecting heightened appetite for high-yield government securities in response to escalating inflation and expanding liquidity in the Nigerian economy.

CBN data revealed that the apex financial institution initially proposed N500 billion worth of offerings across two tenors. However, total bids surged close to N1.4 trillion, underscoring aggressive participation from investors eager to capitalize on elevated returns.

This strategic move aligns with the CBN’s ongoing commitment to tighten monetary policy, targeting the absorption of surplus liquidity and curbing stubborn inflationary trends, even as Nigeria grapples with high interest rates and a historic cash reserve ratio.

Key Highlights from the Auction

The 319-day OMO bill, maturing on March 10, 2026, emerged as the most sought-after instrument. Investor bids for this maturity skyrocketed to N1.062 trillion, more than four times the CBN’s initial offer of N250 billion.
- The CBN ultimately allotted N688.30 billion at a stop rate of 22.73%, with bid rates fluctuating between 20.39% and 23.75%.
The 298-day OMO bill, set to mature on February 17, 2026, also recorded substantial demand. It received total bids amounting to N329.54 billion, compared to the same N250 billion initially offered.
- The allotment stood at N319.54 billion, with a stop rate pegged at 22.37% and bid rates ranging from 20.45% to 23.75%.

Overall, the Central Bank managed to raise more than double its initial auction target, solidifying its aggressive liquidity management approach amidst ongoing economic pressures.

Why Investor Appetite is Growing

The soaring subscription rates point to investors’ strategic shift toward risk-free, high-yield instruments, especially as Nigeria’s inflation rate continues to surge. Analysts suggest that as the money supply expands, opportunities for safer, inflation-beating returns become increasingly attractive (Source).

For more insights into CBN’s monetary tightening efforts, you may also read our related article: