Business

CBN withdraws over N3 trillion in single OMO auction

Published

5 days ago

June 8, 2026

News Diggers

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.

Related Topics:Central Bank of Nigeria Featured Monetary Policy Committee Open Market Operation (OMO)

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Poverty skyrocketed under APC within 6 years- Global body

Published

3 days ago

June 10, 2026

News Diggers

By Philippine Duru

philippineobetoduru@gmail.com

08034905774

Nigeria’s economic reforms have begun to strengthen macroeconomic stability, but rising poverty and food insecurity continue to weigh heavily on millions of citizens, the International Monetary Fund has said.

In its latest assessment of Nigeria’s economy released on Tuesday, the IMF acknowledged that reforms introduced by President Bola Tinubu’s administration over the past three years had improved key economic indicators and enhanced the country’s resilience.

“Strong reforms over the past three years have yielded improved macroeconomic outcomes and built resilience,” the IMF said in a statement issued after its annual review of Nigeria’s economy.

The Fund, however, cautioned that the benefits of the reforms had yet to translate into improved living conditions for a significant portion of the population.

“Still, conditions for many Nigerians remain difficult,” it added.

Since assuming office, President Tinubu has implemented a series of major economic reforms, including the removal of the long-standing fuel subsidy, the liberalisation of the foreign exchange market, and changes to the country’s tax framework. Economists had long advocated for such measures, describing them as necessary to address structural imbalances in the economy.

Despite these efforts, the IMF reported that poverty levels have continued to rise, with about 63 per cent of Nigerians estimated to be living below the poverty line by the end of 2025.

The organisation also disclosed that more than 27 million Nigerians experienced food insecurity during the same period.

The IMF’s findings align with earlier reports by the World Bank, which stated that approximately 61 per cent of Nigerians were living in poverty, compared to 40 per cent in 2019. According to the World Bank, about three-quarters of the increase in poverty occurred before Tinubu assumed office in 2023.

The Fund further identified widespread insecurity, particularly in northern Nigeria where much of the country’s food production takes place, as a major threat to livelihoods and economic activity.

“Another risk to people and economic activity” is the persistent insecurity caused by armed groups, especially in regions critical to agricultural production, the IMF noted.

Meanwhile, inflationary pressures remain a concern. Nigeria’s inflation rate rose to 15.7 per cent in April, marking a five-month high, according to the latest official figures.

Analysts attributed the increase partly to higher global fuel prices linked to the ongoing conflict in the Middle East.

The IMF warned that although rising prices for food, fertiliser and fuel could increase government revenues due to Nigeria’s status as Africa’s largest oil producer, they could also worsen the cost-of-living crisis for vulnerable households.

The higher costs, the Fund said, could intensify inflationary pressures on poorer Nigerians, “potentially aggravating poverty and food insecurity.”

The report comes as Nigeria prepares for the next general election scheduled for January, with President Tinubu expected to seek a second term in office.

Business

Peter Obi accuses Tinubu of excessive borrowing without accountability

Published

3 days ago

June 9, 2026

News Diggers

By Philippine Duru

philippineobetoduru@gmail.com

08034905774

Peter Obi, the Labour Party’s presidential candidate in the 2023 election, has criticised President Bola Tinubu’s administration over what he described as “excessive borrowing without accountability,” alleging that Nigeria’s rising debt profile reflects imprudent governance.

In a post shared on X, Obi claimed that the Tinubu administration had increased Nigeria’s total public debt to about N200 trillion, arguing that the country had accumulated more than N100 trillion in additional debt within three years.

According to him, the pace of borrowing under the current administration contrasts sharply with the debt accumulated during the eight-year tenure of former President Muhammadu Buhari.

Obi expressed concern over what he termed the lack of transparency surrounding the utilisation of borrowed funds, saying millions of Nigerians were already burdened by the implications of the country’s growing debt obligations.

Citing figures from the Federation’s Budget Office, the former Anambra State governor stated that the Federal Government borrowed N11.89 trillion between January and September 2025, exceeding the projected borrowing target of N10.34 trillion by about N1.54 trillion.

He argued that in a responsible system, such a deviation from approved borrowing plans should trigger scrutiny and detailed explanations from the relevant authorities.

Obi further alleged that only N3.10 trillion of the borrowed funds was channelled into capital expenditure during the same period, representing 17.66 per cent of the N17.58 trillion budgeted for capital projects.

He said this left a shortfall of approximately N14.48 trillion, equivalent to 82.34 per cent of the planned capital expenditure for the period.

“The most disturbing aspect of the financial management fiasco under Bola Tinubu is that there is no explanation or information regarding how the balance was utilised or deployed,” Obi said.

He questioned whether the funds had been spent on recurrent expenditure, used for other government activities, or diverted for political purposes, insisting that Nigerians deserved a clear account of how public resources were being managed.

“The question that Nigerians are rightly asking and deserve an answer to is what happened to the balance?” he stated.

Obi maintained that accountability and transparency remained essential to restoring public confidence in government finances and reiterated his belief that a “new and productive Nigeria is possible.”

The Federal Government has repeatedly defended its borrowing strategy, maintaining that loans are being deployed to finance infrastructure projects, support economic reforms and address fiscal challenges inherited over the years.

Business

Dangote refinery hits 700,000 barrel per day

Published

5 days ago

June 8, 2026

News Diggers

By Philippine Duru

philippineobetoduru@gmail.com

08034905773

Nigeria’s drive toward energy self-sufficiency has received a major boost as the Dangote Petroleum Refinery reportedly ramps up production to about 700,000 barrels per day (bpd), significantly increasing the supply of refined petroleum products to the domestic market and strengthening the country’s position in the global refining industry.
The development marks a significant milestone for the $20 billion refinery project, which has steadily increased its operational capacity since commencing production. Industry stakeholders say the higher output level is helping to ease fuel supply concerns, reduce dependence on imported petroleum products, and improve energy security in Africa’s largest economy.
Located in the Lekki Free Trade Zone in Lagos, the refinery was designed with a nameplate capacity of 650,000 barrels per day, making it the largest single-train refinery in the world. Recent reports indicating production levels approaching 700,000 barrels daily have fueled optimism about the facility’s ability to meet growing domestic demand while serving export markets across Africa and beyond.
The refinery’s rising output comes at a critical time when Nigeria is seeking to reduce the billions of dollars spent annually on fuel imports and conserve foreign exchange reserves. For decades, despite being one of Africa’s largest crude oil producers, Nigeria relied heavily on imported refined products due to inadequate domestic refining capacity.
Analysts say the increased production is already transforming the country’s downstream petroleum sector by ensuring a more stable supply of Premium Motor Spirit (PMS), commonly known as petrol, as well as diesel, aviation fuel, and other refined products.
“The refinery is gradually changing the dynamics of Nigeria’s fuel market,” said an energy analyst based in Lagos. “Higher production levels mean greater local availability of petroleum products, lower import dependence, and improved supply chain efficiency.”
The impact has been particularly evident in the petrol market, where increased local production has helped reduce pressure on fuel imports and improved product availability across the country. Industry operators note that the refinery’s growing output is also contributing to increased competition within the downstream sector.
Beyond the domestic market, the refinery has emerged as a significant exporter of refined products. Recent shipments of aviation fuel, diesel, and other petroleum products to Europe, Asia, and other international destinations have strengthened Nigeria’s position as a major refining hub.
The refinery’s export activities are generating valuable foreign exchange earnings and helping to improve the country’s trade balance. Energy experts believe the facility could eventually transform Nigeria from a net importer of refined petroleum products into a major exporter.
The increase in production has also created fresh opportunities for local crude oil producers. With a large domestic refining facility requiring substantial feedstock, upstream operators now have an additional market for their crude production, potentially reducing exposure to international market volatility.
Economic analysts argue that the refinery’s operations could have far-reaching implications for Nigeria’s economy. Increased local refining capacity is expected to support industrial growth, create jobs, stimulate related industries, and reduce logistics costs associated with importing refined products.
The development is also viewed as a positive signal for investors, demonstrating Nigeria’s capacity to execute large-scale industrial projects capable of attracting global attention and investment.
However, experts note that sustaining high production levels will depend on consistent crude oil supply, efficient logistics infrastructure, regulatory stability, and continued collaboration between industry stakeholders and government agencies.
The refinery’s growing role in the domestic market has coincided with efforts by authorities to deepen reforms in the oil and gas sector, improve transparency, and encourage greater private-sector participation across the petroleum value chain.
Market observers believe that as production continues to increase, consumers could benefit from improved fuel availability and potentially more stable pricing, although global crude oil prices and foreign exchange movements will continue to influence market dynamics.
For Nigeria’s broader economy, the refinery represents a strategic asset capable of strengthening energy security, reducing import dependence, supporting foreign exchange earnings, and accelerating industrial development.
With production reportedly reaching 700,000 barrels per day, the Dangote Refinery is increasingly positioning itself as a cornerstone of Nigeria’s energy transformation agenda and a major player in the global refining landscape.