Nigerian Economic Update Issue 39

According to official auction notices from the Central Bank of Nigeria (CBN) for September 29, 2026, the apex bank launched a ₦2.5 trillion Open Market Operations (OMO) auction across three tenors to sterilise a ₦2.433 trillion OMO repayment maturing on 29 September 2026. This near one-for-one liquidity match occurred against a backdrop of mounting system liquidity, with commercial bank placements at the Standing Deposit Facility (SDF) expanding by 6.4% in four days to reach ₦6.278 trillion. Meanwhile, strong demand across maturities helped long-term stop rates cool to 17.29%, down from 18.99%. These matched OMO auctions help prevent excess bank reserves from pressuring the foreign exchange market or driving consumer price inflation after the MPC reset its benchmark rate to 23 %. Extending OMO maturities into mid-2027 anchors short-term money market rates and commits excess liquidity over an extended horizon.

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