The Central Bank of Nigeria (CBN) has announced the successful conclusion of a government securities sale, issuing N1.053 trillion (US$680 million) in short-term instruments as part of its strategic liquidity management exercise.
The auction, which took place on Friday, March 1, saw an oversubscription of the initially offered N500 billion, indicating strong investor confidence.
Of the total bids received, 79%, equivalent to US$530 million, came from foreign investors, reflecting a notable interest in the Nigerian financial market. This development follows the recent Monetary Policy Committee meeting where the CBN Governor, Mr. Olayemi Cardoso, outlined a comprehensive strategy to address key economic challenges, including inflation control, exchange rate stabilization, and overall economic confidence.
The auction marked the first significant monetary move since the policy meeting and a subsequent virtual engagement with foreign portfolio investors. During these interactions, Governor Cardoso presented a detailed plan to curb inflation, stabilize the exchange rate, and enhance confidence in the banking system and the broader economy.
In discussions with investors, Mr. Cardoso emphasized the CBN’s commitment to ensuring sustained increases in foreign currency reserves, improving liquidity in the foreign exchange market, and promptly settling the remaining backlog of legitimate foreign exchange transactions.
“The CBN is committed to supporting price stability by taking the necessary measures to increase liquidity in the foreign exchange markets sustainably. Our focus is on building a fully functioning market that allows smooth entry and exit for investors,” stated Governor Cardoso.
Hakama Sidi Ali, the Acting Director of the Corporate Communications Department at the CBN, expressed satisfaction with the level of confidence demonstrated by investors in the bank. She highlighted that the management of the CBN is optimistic that its monetary policy measures are beginning to yield positive results
