CBN Rakes in ₦26.4 Trillion via T-Bills & OMO in 8 Months Amid Tight Monetary Policy
The Central Bank of Nigeria (CBN) has raised a massive ₦26.4 trillion through Treasury Bills (₦9.47 trillion) and Open Market Operations (OMO) (₦16.92 trillion) between January and August 2025 as part of its aggressive monetary tightening strategy.
This represents a 56.9% YoY growth compared to ₦16.82 trillion raised in the same period of 2024.
Why Is the CBN Raising So Much?
• Goal: To mop up excess liquidity, stabilize the naira, and tame inflation.
• Tools Used:
• T-Bills: Short-term government debt, widely considered safe.
• OMO Bills: Used by the CBN to regulate liquidity and influence short-term interest rates.
By issuing more high-yield OMO bills, the CBN is also soaking up excess cash and keeping inflation expectations in check.
Market Dynamics
• T-Bills raised fell slightly (-4.3% YoY) from ₦9.9 trillion in 2024.
• OMO surged 144% YoY from ₦6.92 trillion in 2024 to ₦16.92 trillion in 2025.
• Yields:
• OMO yields rose above 20%.
• 364-day T-Bills yields fell to 17.44% (Aug), down from 22.62% (Jan).
• Investor Demand: Strong appetite for longer-dated instruments as investors seek to lock in high rates against inflation.
Investor Perspectives
• J.P. Morgan: Recently advised caution, warning that falling oil prices and global risks may hurt Nigeria’s macro stability.
• Local Investors: Still piling into long-dated OMO bills, showing confidence in high yields as a hedge against inflation.
Inflation & Policy Impact
• MPR (interest rate): Raised sharply by 870 bps to 27.5% in 2025.
• Inflation: Cooling gradually — down to 21.88% in July 2025 from 24.23% in March 2025.
• Liquidity Pressure: Nigeria’s M3 money supply hit ₦117.5 trillion (June 2025), up 15.8% YoY, forcing CBN to stay aggressive.
️ Expert View
• Tajudeen Olayinka (Investment Banker & Stockbroker):
• Cutting T-Bills rates is deliberate to attract foreign inflows and boost FX liquidity.
• This move could also stabilize the naira and moderate domestic interest rates in the long run.
• Cordros Research (Analysts):
• Expect yields on T-Bills and bonds to decline towards 18% by year-end 2025 as inflation eases and CBN pauses further rate hikes.
✨ Key Takeaway for Investors
The CBN’s ₦26.4 trillion debt drive shows its determination to fight inflation and stabilize FX. For investors:
• OMO bills offer attractive >20% yields, though not without risks.
• T-Bills remain a safe haven with moderating rates.
• The mixed signals (tight liquidity + falling inflation) suggest opportunities for strategic positioning across tenors.
The Central Bank of Nigeria (CBN) has raised a massive ₦26.4 trillion through Treasury Bills (₦9.47 trillion) and Open Market Operations (OMO) (₦16.92 trillion) between January and August 2025 as part of its aggressive monetary tightening strategy.
This represents a 56.9% YoY growth compared to ₦16.82 trillion raised in the same period of 2024.
Why Is the CBN Raising So Much?
• Goal: To mop up excess liquidity, stabilize the naira, and tame inflation.
• Tools Used:
• T-Bills: Short-term government debt, widely considered safe.
• OMO Bills: Used by the CBN to regulate liquidity and influence short-term interest rates.
By issuing more high-yield OMO bills, the CBN is also soaking up excess cash and keeping inflation expectations in check.
Market Dynamics
• T-Bills raised fell slightly (-4.3% YoY) from ₦9.9 trillion in 2024.
• OMO surged 144% YoY from ₦6.92 trillion in 2024 to ₦16.92 trillion in 2025.
• Yields:
• OMO yields rose above 20%.
• 364-day T-Bills yields fell to 17.44% (Aug), down from 22.62% (Jan).
• Investor Demand: Strong appetite for longer-dated instruments as investors seek to lock in high rates against inflation.
Investor Perspectives
• J.P. Morgan: Recently advised caution, warning that falling oil prices and global risks may hurt Nigeria’s macro stability.
• Local Investors: Still piling into long-dated OMO bills, showing confidence in high yields as a hedge against inflation.
Inflation & Policy Impact
• MPR (interest rate): Raised sharply by 870 bps to 27.5% in 2025.
• Inflation: Cooling gradually — down to 21.88% in July 2025 from 24.23% in March 2025.
• Liquidity Pressure: Nigeria’s M3 money supply hit ₦117.5 trillion (June 2025), up 15.8% YoY, forcing CBN to stay aggressive.
️ Expert View
• Tajudeen Olayinka (Investment Banker & Stockbroker):
• Cutting T-Bills rates is deliberate to attract foreign inflows and boost FX liquidity.
• This move could also stabilize the naira and moderate domestic interest rates in the long run.
• Cordros Research (Analysts):
• Expect yields on T-Bills and bonds to decline towards 18% by year-end 2025 as inflation eases and CBN pauses further rate hikes.
✨ Key Takeaway for Investors
The CBN’s ₦26.4 trillion debt drive shows its determination to fight inflation and stabilize FX. For investors:
• OMO bills offer attractive >20% yields, though not without risks.
• T-Bills remain a safe haven with moderating rates.
• The mixed signals (tight liquidity + falling inflation) suggest opportunities for strategic positioning across tenors.