The Central Bank of Nigeria (CBN) withdrew an estimated N6.62 trillion in net liquidity from the banking system through Open Market Operations (OMO) in September 2026, highlighting the apex bank’s intensified efforts to manage excess naira liquidity and influence conditions in the financial market.
The CBN achieved the net withdrawal after selling approximately N17.51 trillion worth of OMO bills across five auctions during the month while returning about N10.89 trillion to investors through maturing securities. Consequently, fresh sales exceeded repayments by about N6.62 trillion.
CBN Steps Up OMO Operations
The September figures show how aggressively the CBN used securities to manage liquidity.
The apex bank conducted five major OMO auctions on September 1, 8, 16, 24 and 29. Across those auctions, it allotted approximately N2.88 trillion, N4.40 trillion, N3.29 trillion, N2.255 trillion and N4.686 trillion respectively.
However, the CBN also had to repay previously issued securities as they matured.
As a result, the N17.51 trillion in fresh sales did not represent N17.51 trillion of additional money removed from the financial system. Instead, investors received N10.89 trillion from maturing instruments, which offset a substantial portion of the new sales.
Therefore, the actual net liquidity withdrawal stood at approximately N6.62 trillion.
Maturing Bills Returned N10.89 Trillion
The maturity schedule played an important role in determining the final liquidity position.
The CBN returned N62 billion to investors on September 7. A day later, another N3.07 trillion matured and flowed back into the financial system.
Similarly, N3.06 trillion matured on September 15, while the CBN repaid approximately N2.27 trillion on September 22.
Then, on September 29, another N2.433 trillion reached maturity.
Altogether, those repayments injected approximately N10.89 trillion into the financial system during the month.
Nevertheless, the CBN sold more securities than it repaid. Consequently, the banking system ended September with a net liquidity withdrawal of about N6.62 trillion.
First and Final Auctions Delivered the Biggest Withdrawals
The impact of the CBN’s operations varied considerably throughout September.
For instance, the September 1 auction generated about N2.82 trillion in net absorption after the bank sold N2.88 trillion against only N62 billion in maturing securities.
Likewise, the September 8 operation produced approximately N1.33 trillion in net withdrawal after N4.40 trillion in new sales outweighed N3.07 trillion in repayments.
Meanwhile, the transactions around September 15 and 16 produced a much smaller net withdrawal of roughly N236 billion.
The September 22 and 24 transactions, on the other hand, resulted in a marginal net liquidity injection of about N15 billion.
However, the final auction once again produced a significant withdrawal. On September 29, the CBN sold N4.686 trillion while approximately N2.433 trillion in securities matured, leaving a net absorption of around N2.25 trillion.
Investor Demand Remains Strong
Despite the aggressive liquidity management, investors continued to show strong appetite for CBN securities.
Across the five September auctions, subscriptions reportedly reached approximately N27 trillion, compared with N18.72 trillion in August.
That means investors submitted bids far above the amounts initially offered by the apex bank.
Moreover, the September 29 auction demonstrated particularly strong demand. A newly introduced 266-day OMO instrument attracted approximately N4.54 trillion in subscriptions against an initial offer of N1 trillion.
The CBN eventually allotted about N3 trillion on the instrument.
Therefore, although the apex bank was actively withdrawing liquidity, banks and other investors continued to seek opportunities to place funds in its securities.
CBN Extends Liquidity Management Into 2027
Another important feature of September’s operations was the increased use of longer-dated securities.
The 266-day OMO instrument introduced at the end of the month will mature in 2027.
By issuing longer-tenor securities, the CBN can keep a portion of investors’ funds tied up for an extended period rather than allowing those funds to return to the banking system in the short term.
Consequently, the strategy could help the apex bank manage liquidity beyond the immediate month and reduce the amount of money readily available within the financial system.
At the same time, the CBN must balance liquidity management with the need to maintain orderly financial-market conditions.
Liquidity Still Remains in the Banking System
Interestingly, the aggressive OMO operations did not eliminate excess liquidity from the financial system.
More than N6.2 trillion reportedly remained with the CBN’s Standing Deposit Facility as of September 29.
The figure suggests that banks still had substantial funds available for placement despite the central bank’s efforts to absorb liquidity through securities.
In other words, the N6.62 trillion net withdrawal represents a significant tightening operation, but it does not mean that liquidity disappeared from the banking system.
Instead, a considerable amount of money continued to seek safe and interest-bearing placements with the apex bank.
OMO Becomes a Major Liquidity Management Tool
The September figures further demonstrate the growing importance of OMO in the CBN’s monetary operations.
Through OMO, the central bank can sell securities to financial institutions and investors, thereby taking money out of immediate circulation.
When those securities mature, however, the CBN returns the principal to investors, injecting liquidity back into the system.
Therefore, the effectiveness of the operation depends not simply on how much the CBN sells, but on the difference between fresh sales and maturing securities.
September provides a clear example of that distinction.
Although the CBN sold N17.51 trillion in OMO bills, it returned N10.89 trillion through maturities. The resulting net withdrawal was therefore N6.62 trillion rather than the full value of the fresh sales.
Stronger Liquidity Control Amid Changing Monetary Conditions
The intensified OMO activity also comes as the CBN adjusts its broader monetary policy stance.
The apex bank recently reduced the Monetary Policy Rate to 23 per cent from 26.5 per cent while maintaining the Cash Reserve Requirement for deposit money banks at 45 per cent.
Consequently, the CBN is using different policy tools simultaneously to influence financial conditions.
While the lower policy rate points toward an adjustment in the cost of money, active OMO sales allow the apex bank to control the amount of liquidity circulating through the banking system.
That combination gives the CBN greater flexibility as it responds to inflation, market liquidity and other monetary conditions.
What the September Figures Mean
Ultimately, September’s OMO figures show that the CBN is taking a more active approach to liquidity management.
The N17.51 trillion in fresh OMO sales demonstrates the scale of the securities programme, while the N10.89 trillion in repayments shows how much liquidity returned through maturing instruments.
After accounting for both sides, the CBN achieved an estimated N6.62 trillion net withdrawal.
However, the continued accumulation of funds at the Standing Deposit Facility indicates that substantial liquidity remains within the financial system.
Going forward, the balance between fresh OMO sales, maturing securities, investor demand and banking-system liquidity will remain important for financial-market conditions.
For now, the September figures underline a clear shift in the CBN’s approach: rather than relying on a single monetary tool, the apex bank is using OMO securities aggressively to absorb excess funds, manage the timing of liquidity and influence the amount of naira available within the financial system.
