OMO sales rise 18x as CBN tightens noose on inflation.

The Open Market Operations (OMO) sales surged 18 times in one year as the Central Bank of Nigeria (CBN) intensified its fight against inflation and naira volatility, sending a signal to investors of a shift to orthodox monetary policy.

In terms of OMO repayment, the CBN spent N977.7 billion in 2024, marking a 171.3 percent increase from N323.5 billion in 2023.

OMO sales are a tool used by central banks to control liquidity (money supply) in the financial system. Central banks sell securities (such as treasury bills) to banks and other investors to reduce excess money in circulation. This helps to curb inflation and stabilise the economy.

Ayodeji Ebo, an investment professional and managing director/CBO at Optimus by Afrinvest, said the sharp 1,773.7 percent rise in OMO sales and 171.3 percent increase in repayments reflect the CBN’s efforts to control excess liquidity, curb inflation, and stabilise the exchange rate.