The Central Bank of Nigeria (CBN) has raised a total of N804.85 billion in its Open Market Operations auction conducted on Monday, April 29, 2025.
This comes as investors continue to chase high-yield securities amid excess liquidity and elevated inflation expectations.
In the latest auction, the CBN offered two long-tenor instruments — a 329-day and a 350-day bill — with each offered at N250 billion.
Total subscriptions at the auction stood at N1.057 trillion, representing an oversubscription of 111 per cent.
Although strong, it was slightly lower than the previous auction held on April 25, where the apex bank raised N1.008 trillion from N1.391 trillion in subscriptions after offering two N500 billion bills.
However, investor demand shifted significantly towards the 350-day bill, as participants sought to lock in higher yields over a longer period, reflecting ongoing confidence in Nigeria’s sovereign debt and expectations that interest rates would remain elevated for longer.
The 350-day bill, which matures on April 14, 2026, also recorded huge interest, recording a subscription of N923.60 billion, more than three times the offered amount.
The central bank allotted N698.60 billion at a stop rate of 22.73 per cent, with bid rates ranging between 22.4990 per cent and 22.9700 per cent.
The strong investor turnout mirrored the trend from the previous auction, where the 319-day instrument attracted N1.062 trillion in bids and was allotted N688.30 billion at the same stop rate.
In contrast, the 329-day bill, which matures on March 24, 2026, received muted interest. The instrument attracted N133.25 billion in subscriptions, representing just over half of the N250 billion offered, with the CBN allotting N106.25 billion.
The stop rate for the shorter bill stood slightly lower at 22.69 per cent, with bid rates ranging between 22.3200 per cent and 22.8900 per cent.
Investors appear to be focusing on maximising yields by favouring the longest tenors available, a pattern that has been evident across recent auctions.
Monday’s auction followed a record-breaking sale on Friday, April 25, where the CBN raised N1.008 trillion after offering N500 billion, driven by strong demand for longer-dated bills. However, the amount raised at the latest auction was lower, largely due to weaker interest in the 329-day paper.
Notwithstanding, the continued oversubscription of the 350-day bill reflects a strong appetite for risk-free assets in an environment characterised by surging liquidity and limited high-yield investment options.
