Business
CBN withdraws over N3 trillion in single OMO auction
By Philippine Duru
philippineobetoduru@gmail.com
08034905774
The Central Bank of Nigeria (CBN) withdrew a massive N3.04 trillion from the financial system in a single Open Market Operation (OMO) auction conducted in early June, underscoring the apex bank’s aggressive efforts to manage excess liquidity, curb inflationary pressures, and stabilise the foreign exchange market.
The liquidity mop-up, one of the largest OMO interventions in recent years, attracted strong investor interest from banks, foreign portfolio investors, pension fund managers, and other institutional investors seeking to take advantage of the high yields offered on government-backed securities.
Market analysts said the development reflects the CBN’s determination to sustain its tight monetary policy stance amid persistent inflationary concerns and ongoing efforts to maintain stability in the foreign exchange market.
OMO bills are one of the key monetary policy instruments used by the central bank to regulate the amount of money circulating in the economy. By selling OMO securities to investors, the CBN effectively removes excess cash from the banking system, thereby reducing liquidity available for lending, speculation, and other economic activities that could fuel inflation.
The N3.04 trillion withdrawal comes at a time when the apex bank is intensifying efforts to tame inflation, which has remained elevated despite recent monetary tightening measures. The central bank has repeatedly emphasised the need to maintain a disciplined monetary environment to restore price stability and strengthen investor confidence.
Financial market participants noted that the size of the subscription highlights the abundance of liquidity in the financial system as well as investors’ appetite for relatively risk-free instruments offering attractive returns.
“The strong subscription demonstrates that there is still significant liquidity seeking investment outlets,” said a Lagos-based fixed-income analyst. “The CBN is using OMO auctions strategically to absorb excess funds and support its broader monetary policy objectives.”
The auction also reflects the growing attractiveness of Nigerian fixed-income securities following successive interest rate hikes implemented by the Monetary Policy Committee (MPC). Higher yields have continued to draw interest from both local and foreign investors looking to benefit from improved returns.
Analysts believe the liquidity withdrawal could have several implications for the broader economy. By reducing the amount of money available within the banking system, the CBN may help ease inflationary pressures and reduce demand-driven price increases. However, tighter liquidity conditions could also increase borrowing costs for businesses and consumers.
The banking sector is expected to feel the immediate impact of the liquidity absorption, as lenders may become more cautious in extending credit while competing for available funds. This could result in higher interbank lending rates and increased financing costs across various sectors of the economy.
Market observers also point to the potential positive impact on the foreign exchange market. Excess liquidity has often been linked to speculative demand for foreign currency, contributing to pressure on the naira. By mopping up surplus funds, the central bank may help reduce speculative activities and support exchange-rate stability.
Foreign portfolio investors have increasingly returned to Nigeria’s fixed-income market following reforms aimed at improving transparency in the foreign exchange market and restoring investor confidence. The attractive yields on OMO bills and Treasury securities have made Nigeria a more appealing destination for global capital seeking higher returns.
Economic analysts, however, caution that while liquidity tightening can help control inflation, it must be balanced against the need to support economic growth. Excessively restrictive monetary conditions could limit access to credit for businesses, potentially slowing investment and expansion activities.
The latest OMO auction is widely viewed as a signal that the CBN remains committed to maintaining a hawkish monetary policy stance in the near term. With inflation management, exchange-rate stability, and capital inflows remaining key policy priorities, analysts expect further liquidity management operations in the coming months.
As investors continue to respond positively to high-yield fixed-income instruments, attention will remain focused on the central bank’s next policy moves and their implications for inflation, economic growth, interest rates, and the broader financial markets.
The N3.04 trillion liquidity withdrawal marks another significant step in the CBN’s ongoing efforts to strengthen monetary stability, reinforce confidence in the financial system, and support Nigeria’s broader economic reform agenda.
Business
North African Airline incurs Nigeria’s wrath
By Philippine Duru
philippineobetoduru@gmail.com
08034905774
Nigeria has warned EgyptAir to modernise the aircraft deployed on its Nigerian routes, stressing that continued use of ageing planes could affect the airline’s operations in the country.
The Minister of Aviation and Aerospace Development, Festus Keyamo, gave the warning during a bilateral meeting with his Egyptian counterpart, Sameh El-Hefny, on the sidelines of the ongoing El-Alamein International Airshow (EIAS 2026) in Egypt.
According to a statement issued by Keyamo’s media aide, Tunde Moshood, the meeting focused on improving air connectivity between Nigeria and Egypt and strengthening cooperation between the two countries’ civil aviation authorities.
The discussions also covered the expansion of technical and professional capacity, as well as opportunities for greater collaboration among airlines, airports, regulators and other aviation stakeholders.
Keyamo specifically urged EgyptAir to deploy newer-generation aircraft on its Nigerian routes, rather than continuing with what Nigeria considers ageing aircraft.
“The minister also used the engagement to emphasise the need for a stronger and more modern fleet deployment by EgyptAir on its Nigerian routes,” Moshood said.
He said Keyamo urged the airline’s management to move away from the continued deployment of ageing aircraft and prioritise newer-generation aircraft in the Nigerian market.
According to the minister, fleet modernisation was essential to improving passenger experience, operational efficiency and the airline’s competitiveness.
Keyamo further stressed the strategic importance of Nigeria-Egypt aviation relations, noting that both countries occupy important positions within Africa’s aviation ecosystem.
He reaffirmed Nigeria’s commitment to expanding strategic international partnerships to improve air connectivity, promote tourism and trade, support airline growth and deliver greater value to passengers and the aviation industry.
The Nigerian delegation also expressed the country’s readiness to work with Egypt’s Ministry of Civil Aviation to identify areas of mutual cooperation, particularly within the framework of the Single African Air Transport Market (SAATM).
Responding, El-Hefny welcomed the engagement and reaffirmed Egypt’s commitment to deepening aviation cooperation with Nigeria.
He called for closer collaboration between the two countries to advance air transport development and strengthen links between their aviation industries.
The Egyptian minister also advocated stronger institutional cooperation between the African Civil Aviation Commission (AFCAC) and the League of Arab Civil Aviation (LACA).
“Enhanced collaboration between the two regional aviation bodies could promote stronger partnerships and facilitate greater cooperation among African and Arab States,” El-Hefny said.
The meeting ended with both ministers reaffirming their commitment to sustained dialogue, stronger institutional cooperation and initiatives aimed at delivering tangible benefits to the aviation sectors of Nigeria and Egypt.
Business
₦10m monthly made from akara and bread business -Umo Eno
Philippine Duru
philippineobetoduru@gmail.com
08034905774
Akwa Ibom State Governor, Umo Eno, has recounted his early experience in entrepreneurship, revealing that he once made not less than ₦10 million in a month from selling akara and bread.
Eno, who spoke while reflecting on his journey before entering public service, said the business experience played an important role in shaping his understanding of enterprise, hard work and wealth creation.
According to the governor, he started from a modest venture involving the sale of akara and bread before gradually expanding his business activities.
“I started selling akara and bread. I made not less than ₦10m in a month,” Eno said.
The governor’s account highlights the entrepreneurial path he pursued before rising through the ranks in business and eventually becoming governor of Akwa Ibom State.
Eno has frequently emphasised the importance of entrepreneurship and economic empowerment, particularly as a means of creating opportunities for young people and reducing dependence on government employment.
His recollection of the akara and bread business also underscored his view that small businesses, when properly managed and supported, can grow into significant sources of income and employment.
The governor’s comments come amid growing conversations around entrepreneurship, youth empowerment and the need to create sustainable livelihoods in Nigeria, where many young people are turning to small and medium-scale enterprises to earn a living.
Eno has continued to advocate policies and initiatives aimed at expanding economic opportunities and encouraging residents to become self-reliant through productive ventures.
His story of moving from selling akara and bread to occupying the highest political office in Akwa Ibom has also been presented as an example of how entrepreneurship, persistence and business experience can shape an individual’s journey to leadership.
Business
All share index gains about 0.81% as NGX rebounds
The Nigerian Exchange Limited (NGX) rebounded last week, with the All-Share Index (ASI) gaining about 0.81 per cent to close at 241,298.47 points, as renewed investor interest in oil and gas and banking stocks lifted market sentiment.
The week’s gain translated into an estimated ₦1.29 trillion increase in market capitalisation, pushing the value of listed equities to about ₦155.83 trillion.
With the latest appreciation, the NGX’s year-to-date return remained strong at approximately 55 per cent, underscoring the market’s substantial gains despite intermittent periods of profit-taking and volatility.
The recovery was largely driven by buying interest in oil and gas and banking stocks, with Seplat Energy among the notable gainers during the week.
Market sentiment also received a boost from developments in Nigeria’s international financial-market standing. FTSE Russell confirmed the country’s reclassification to Frontier Market status, effective September 21, 2026, a move expected to influence international investor positioning toward Nigerian equities.
Further support came from Moody’s decision to revise Nigeria’s outlook to positive, reinforcing expectations that ongoing economic and fiscal reforms could improve the country’s credit profile.
Despite the positive performance, trading activity was relatively subdued, partly reflecting the shortened trading week. Market volume declined as investors adopted a more cautious approach amid prevailing economic uncertainties and profit-taking pressures.
Analysts said the latest rebound highlights continued investor appetite for fundamentally strong sectors, although the sustainability of the market’s upward trajectory will depend on macroeconomic conditions, corporate earnings, foreign investor participation and policy developments.
As investors enter a new trading week, attention is expected to remain on the performance of banking and energy stocks, while the implications of Nigeria’s forthcoming Frontier Market reclassification could further shape sentiment and capital flows into the equities market.
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