Nigeria's central bank sold 2.63tn NGN (€1.75bn) of open market operation bills on October 22 against 2.0tn NGN (€1.33bn) offered, the Central Bank of Nigeria (CBN) said. The 180-day bill cleared at 17.14%, up from 16.94% for a 182-day bill on September 29, while the 138-day bill cleared at 17.63%, against 17.24% for a 147-day bill at that earlier sale, the bank said.
Analysis: Auction yields rose for the first time since the central bank's September 22 rate cut, although they remained below the 18.4% to 19.6% range seen in early September. Bills yielding above 17% offered more than the roughly 15.9% return on one-year Treasury bills. The CBN may be seeking to absorb additional naira liquidity, but the auction alone does not establish that motive. Higher short-term returns can make central bank securities attractive relative to bank lending. The results of the October 28 Treasury bill auction may show whether government funding costs also rise.
Source: Central Bank of Nigeria, CBN Government Securities Summary, OMO results (JSON feed), 22 October 2026 and 29 September 2026 and September 2026 (before the MPC cut); Central Bank of Nigeria, CBN, Government Securities Summary - Primary Market (NTB), 14 October 2026; Central Bank of Nigeria, CBN, Key Decisions of the Monetary Policy Committee, September 21-22, 2026, September 2026; Nairametrics, Nairametrics, 'Naira gains N8 against dollar, biggest daily rise since August', October 28, 2026 (CBN NFEM data for October 27), 27 October 2026; European Central Bank, ECB euro foreign exchange reference rates, US dollar (USD) page, 28 October 2026