The Central Bank of Nigeria (CBN) ramped up its Open Market Operations (OMO) sales to N18.79 trillion in the first half (H1) of 2026, marking a 313.3 per cent increase from N8.79 trillion recorded in the first half (H1) of 2025. Demographics
The figures are contained in CBN’s latest financial data covering H1 2025 and H1 2026. The data also revealed that OMO repayment closed H1 2026 at N34.49 trillion, about 518.4 per cent increase over N5.58trillion in H1 2025.
The CBN data revealed further that higher OMO repayments moderated the overall liquidity impact, as net OMO sales declined to N1.85 trillion in H1 2026 from N3.22 trillion a year earlier. The development signals a shift in the CBN’s liquidity management strategy, reflecting more aggressive intervention in the money market while allowing larger maturities to flow back into the system. It also underscores how monetary authorities are balancing inflation control, exchange rate stability, and capital flow pressures in a volatile global environment.
CBN data shows a sharp increase in OMO activity in response to evolving liquidity and inflation dynamics during the period under review. The figures point to a significantly more active monetary stance compared to the same period in 2025.
Monthly trends showed volatility, with January 2026 posting N8.54 trillion in sales and N5.63 trillion in repayments. February 2026 recorded higher repayments than sales, and March closed with a net withdrawal of about N1.97 trillion. For April 2026, the CBN reported N6.4 trillion OMO sales and N3.46 trillion OMO repayments and in May 2026, it declared N3.62 trillion OMO sales and N9 trillion OMO repayments. In addition, an estimated N7.52 trillion was declared by CBN as OMO sales in June 2026 and N5.04 trillion OMO repayment.
These figures highlight a dynamic liquidity management approach, where issuance and repayments are actively calibrated to stabilise the financial system. OMO bills are increasingly traded multiple times, boosting turnover far beyond issuance levels.
The instruments now dominate Nigeria’s fixed-income market due to their liquidity and short tenor. High turnover indicates intense liquidity recycling and active portfolio management by investors. This shift suggests that OMO bills have evolved beyond liquidity tools into highly tradable assets, shaping market behaviour.
Market analysts say the surge reflects both liquidity pressures and broader monetary policy objectives, with implications for investor behaviour and financial stability. Experts also note that the divergence between issuance and turnover is largely structural.
Managing Director, Highcap Securities Limited,, Mr. David Adonri explained that the surge in OMO issuance reflects periods of excess liquidity, prompting the CBN to intensify its mop-up operations. “OMO is used to stabilise liquidity. When there is too much money in the system, the CBN withdraws it. When liquidity tightens, it allows funds to flow back,” he said. He also highlighted a policy tension between growth ambitions and monetary tightening.
“A $1 trillion economy requires liquidity, but too much liquidity fuels inflation and exchange rate instability. The CBN is balancing these competing priorities,” he added.