CBN repays N10.69tn as October maturities exceed auctions

Central Bank of Nigeria building. Photo: CBN

The Central Bank of Nigeria repaid investors N10.69tn on matured securities in October 2026, exceeding funds raised through fresh auctions by N3.20tn and reversing the previous month’s liquidity withdrawal.

The repayments, made between 2 and 29 October, were higher than the N7.49tn raised through Open Market Operations and Nigerian Treasury Bills, according to an analysis of auction and maturity data.

The difference means the CBN returned more money to investors than it collected through new securities, potentially easing pressure on banking system liquidity.

The development contrasts with September, when the CBN withdrew N6.62tn through OMO operations alone.

October’s repayments comprised N6.71tn in OMO maturities and approximately N3.99tn in Treasury bills repayments.

Against these obligations, OMO auctions raised N6.18tn, while T-bill sales generated N1.31tn.

The resulting shortfalls were about N527bn for OMO and N2.68tn for T-bills, bringing the total repayment surplus to approximately N3.20tn.

The repayment pattern became more pronounced towards the end of the month, as the CBN and the Debt Management Office accepted fewer bids at their auctions.

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At the 28 October T-bill auction, the DMO allotted only N71.16bn from subscriptions of N1.91tn, leaving most investors’ bids unfilled.

The CBN initially withdrew more liquidity during its 6 October OMO auction, allotting N3.31tn against N2.17tn in maturities.

However, subsequent repayments of N2.41tn on 13 October and N2.13tn on 27 October changed the monthly position.

The final two auctions raised only N316.10bn against subscriptions of about N4.19tn, further widening the gap between repayments and fresh borrowing.

The higher repayments coincided with substantial deposits by banks at the CBN’s Standing Deposit Facility, where financial institutions place excess funds.

SDF balances reached N8.41tn on 28 October before falling to N7.63tn the following day and N7.19tn on 30 October.