CBN raises over N1 trillion at latest auction as money supply surges

The Central Bank of Nigeria (CBN) raised a total of N1.008 trillion at its Open Market Operations (OMO) auction held on Friday, April 25, 2025, following overwhelming investor demand that led to a 102% oversubscription.

The auction, which initially offered N500 billion across two maturities, attracted total bids of nearly N1.4 trillion, with investors seeking to take advantage of high-yield government instruments amid rising inflation and expanding money supply.

This move by the CBN affirms its aggressive monetary tightening stance aimed at mopping up excess liquidity and cooling inflationary pressures that have persisted despite elevated interest rates and a record-high cash reserve ratio.
The most in-demand instrument at the auction was the 319-day OMO bill, maturing on March 10, 2026. It drew a total subscription of N1.062 trillion, more than four times the CBN’s offer of N250 billion. The central bank eventually allotted N688.30 billion at a stop rate of 22.73%, with bid rates ranging between 20.39% and 23.75%.

The demand surge reflects investor expectations that high interest rates will persist, prompting a move to lock in attractive yields for the longer term.

In comparison, the 298-day bill, maturing on February 17, 2026, also performed strongly. It received bids totalling N329.54 billion versus the same N250 billion on offer. The CBN allotted N319.54 billion at a stop rate of 22.37%, with bid rates falling between 20.45% and 23.75%.

In total, the CBN raised N1.008 trillion, more than double its initial offer, and a clear sign of the liquidity that remains available in the financial system despite policy tightening.

Source: nairametrics.com

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