RismadarVoice Reporters
September 10, 2026
The Central Bank of Nigeria has continued to reduce yields on short-term government securities as improved macroeconomic conditions and relative stability in the foreign exchange market provide room for adjustments in fixed-income rates.
At its latest Open Market Operations auction held on Tuesday, the apex bank offered ₦1tn worth of bills and received total subscriptions of ₦6.32tn across three maturities.
The CBN allotted about ₦4.4tn, rejecting some bids amid strong investor demand for the securities.
Data from Herwood Securities Limited showed that yields declined across all three OMO maturities, extending the downward trend recorded in recent auctions.
The December 1, 2026 OMO bill cleared at 19.14 per cent, down from 19.59 per cent recorded during the September 1 auction.
The February 2027 bill closed at 18.49 per cent, representing a 50-basis-point decline from its previous rate of 18.99 per cent, while another February 9, 2027 instrument cleared at 18.41 per cent.
The CBN also reduced the rate on one-year Nigerian Treasury Bills, with the 364-day NTB clearing at 16.84 per cent during the first primary market auction in September.
Market analysts attributed the decline in yields to improving economic conditions, increased liquidity in the banking system and relative stability in the naira exchange rate.
The latest auction came as banking system liquidity remained elevated, with system liquidity opening on Tuesday at a credit balance of ₦7.35tn, representing a ₦3.02tn increase from Monday’s ₦4.33tn, according to Herwood Securities.
The high liquidity level encouraged deposit money banks to maintain significant placements with the CBN’s Standing Deposit Facility, while demand for funds through the borrowing window remained limited.
Despite the large OMO allotment, money market rates remained stable, with the Open Repo Rate staying at 22 per cent, while the overnight rate declined slightly to 22.15 per cent.
Herwood Securities said money market conditions were expected to remain comfortable, with banks retaining enough liquidity to meet short-term funding needs.
The continued decline in security yields, strong auction demand and increased liquidity indicate gradual easing in short-term funding conditions as the CBN continues to use OMO and Treasury bill auctions to manage liquidity within the financial system.
