The Central Bank of Nigeria (CBN) allotted N3.854 trillion at its Open Market Operations (OMO) auction on November 10, 2026, surpassing its initial N1.50 trillion offer by N2.354 trillion as investors showed strong preference for longer-dated securities.
Auction results published by the apex bank showed that investors submitted N4.069 trillion in bids, representing a bid-to-cover ratio of 2.71 times the advertised offer. The outcome reflects sustained demand for longer-tenor instruments, consistent with previous auctions, with the CBN accepting almost 95 percent of subscriptions while stop rates declined across the longer maturities.
The CBN offered N500 billion each across the 154-day, 252-day and 329-day instruments, bringing the total advertised offer to N1.50 trillion. Investor demand significantly exceeded the amount offered, prompting the apex bank to allot N3.854 trillion, approximately 2.57 times its initial offer.
The results indicate that investors were more willing to commit funds to longer-dated securities at lower stop rates rather than accept the higher rates offered on shorter maturities. The longer-dated securities cleared at lower stop rates than the shorter instrument, with a 145 basis point difference between the 154-day and 329-day stop rates. The longer bill cleared at 15.99 percent compared with 17.44 percent.
The November 10 auction extends a pattern of substantial OMO allotments by the CBN, although the level of acceptance differs from some recent operations. At the November 3 auction, the apex bank offered N1.50 trillion, attracted N3.52 trillion in subscriptions and allotted approximately N2.95 trillion across the 119-day, 126-day and 133-day instruments. That auction recorded stop rates of 17.77 percent, 17.71 percent and 17.67 percent across the three tenors. The latest N3.854 trillion allotment represents an increase of approximately N900 billion compared with the November 3 outcome.
At the November 6 auction, the CBN allotted N724.32 billion, accepting approximately 38.37 percent of N1.887 trillion in bids against a N1 trillion offer. The latest auction therefore represents a notable change in allotment behaviour, particularly as the CBN accepted almost all subscriptions for the 252-day and 329-day instruments.
The auction also highlights the scale of the CBN’s liquidity-management operations. It comes against the backdrop of elevated banking-system liquidity, with substantial funds previously placed by banks at the CBN’s Standing Deposit Facility (SDF). SDF balances rose to N8.311 trillion in the week ended November 6, even as the apex bank continued absorbing liquidity through OMO operations.
However, the undersubscription of the 154-day instrument suggests that investors remain less interested in shorter-dated securities at the higher stop rate. The next OMO auctions and the volume of maturing obligations will therefore be important in determining whether the CBN sustains its aggressive liquidity absorption and whether the current preference for longer-dated instruments continues.
