Money markets: interest rates, bills and bonds
The policy rate and the corridor around it, what banks charge each other overnight, Treasury bill, OMO and bond auctions, Nigeria's dollar bonds, and whether savings are beating inflation.
Where the CBN has set interest rates
Decisions of the Monetary Policy Committee (MPC). Figures as at 3 Nov 2026. Next MPC meeting: 23–24 Nov 2026.
The interest rate corridor
Banks can borrow from the CBN overnight at the ceiling and deposit spare cash with it at the floor, so short-term market rates should stay between the two. When banks hold a lot of spare cash, rates sink to the floor.
Interbank rates are sitting at or near the floor, a sign that banks have more cash than they need. The CBN mops up the excess by selling OMO bills (see below).
All policy settings
| Setting | Level | Note | Source |
|---|---|---|---|
| Monetary Policy Rate | 23.00% | Reset from 26.5% on 22 Sep 2026 | CBN MPC communiqué No. 164 |
| Standing lending facility (ceiling) | 23.50% | MPR plus 0.5 points | CBN corridor, +50/−300 bp |
| Standing deposit facility (floor) | 20.00% | MPR minus 3 points | CBN corridor, +50/−300 bp |
| Cash reserve requirement | 45.00% | Commercial banks; merchant banks 16%, non-TSA public deposits 75% | CBN MPC, Sep 2026 |
| Liquidity ratio | 30.00% | Unchanged | As reported, Sep 2026 |
What banks charge each other
Rates on overnight lending between banks, backed by securities (open repo) or unsecured (overnight).
Interbank rates and liquidity
| Rate | Level | Change | Date |
|---|---|---|---|
| Open repo rate (OPR) | 20.00% | Unchanged | 3 Nov 2026 |
| Overnight rate | 20.25% | −0.13 pts | 3 Nov 2026 |
| Banking system liquidity | ₦7.33trn surplus | ₦7.37trn on 30 Oct | Opening, 3 Nov 2026 |
Source: MarketForces Africa, 3 Nov 2026; FMDA October 2026 market report.
The latest T-bill auction
DMO auction, 28 Oct 2026. Bills are short-term government loans sold by the CBN for the Debt Management Office, usually every two weeks.
Stop rates
| Tenor | Stop rate | Previous | Offered | Sold |
|---|---|---|---|---|
| 91-day | 15.40% | — | ₦100bn | ₦22.33bn |
| 182-day | 15.79% | — | ₦100bn | ₦10.45bn |
| 364-day | 15.80% | 15.90% (14 Oct) | ₦600bn | ₦38.38bn |
Investors bid ₦1.91 trillion but the DMO sold only ₦71.16 billion, holding rates down. Secondary-market bill yields averaged 17.47% on 27 Oct.
The CBN's open market operations
CBN OMO auction, 22 Oct 2026. The CBN sells its own bills to soak up spare cash in the banking system and support the naira. They pay more than Treasury bills but are mainly open to banks and large investors.
OMO auction
| Tenor | Stop rate | Offered | Sold | Matures |
|---|---|---|---|---|
| 138-day | 17.63% | ₦1trn | ₦855.24bn | 9 Mar 2027 |
| 180-day | 17.14% | ₦1trn | ₦1.77trn | 20 Apr 2027 |
The latest bond auction
DMO auction, 19 Oct 2026. Naira bonds of 5 to 30 years, sold monthly by the Debt Management Office.
Stop rates
| Bond | Stop rate | Previous | Offered | Allotted |
|---|---|---|---|---|
| 19.00% FGN Feb 2034 | 16.99% | — | ₦500bn | ₦92.14bn |
| 16.79% FGN Sep 2036 | 17.29% | 16.79% | ₦800bn | ₦781.31bn |
| 15.45% FGN Jun 2038 | 17.19% | 16.85% | ₦450bn | ₦350.72bn |
Competitive allotments shown; a further ₦800 billion went to non-competitive bids, for ₦2.02 trillion in all.
FGN Savings Bonds for individuals
October 2026 offer. Sold monthly from ₦5,000, with interest paid every quarter. Buy through DMO-appointed stockbrokers and banks.
Rates on offer
| Bond | Rate (a year) | Matures |
|---|---|---|
| 2-year FGN Savings Bond | 13.071% | 14 Oct 2028 |
| 3-year FGN Savings Bond | 14.071% | 14 Oct 2029 |
Nigeria's dollar bonds
DMO closing yields, 29 Oct 2026. Yields on the Federal Government's US dollar bonds traded abroad, by maturity. Longer bonds pay more because lenders want extra for the wait. Not comparable with naira yields: these are in dollars.
Are savings beating inflation?
Each yield adjusted for headline inflation of 14.63% (NBS, headline inflation, Sep 2026). A positive real return means your money grows faster than prices; a negative one means it loses buying power.
| Option | Yield | After inflation |
|---|---|---|
| Money market funds (top 10 average) Range 18.59–21.11%, August 2026 | 19.60% | +4.34 pts |
| FGN bond, 2036 Auction, 19 Oct 2026 | 17.29% | +2.32 pts |
| 364-day Treasury bill Auction, 28 Oct 2026 | 15.80% | +1.02 pts |
| 91-day Treasury bill Auction, 28 Oct 2026 | 15.40% | +0.67 pts |
| 3-year FGN Savings Bond October 2026 offer | 14.07% | −0.49 pts |
| 2-year FGN Savings Bond October 2026 offer | 13.07% | −1.36 pts |
Real return = (1 + yield) ÷ (1 + inflation) − 1. Yields are before tax and fees; money market fund figures are reported yields and are not guaranteed. For information only, not investment advice.
Ten years of the policy rate
The MPR at the end of each month. Rates rose sharply in 2022–24 to fight inflation and the naira's fall; cuts began in September 2025.
Money market words, in plain language
For information only; not investment advice.
- CBN MPC communiqué No. 164, 22 Sep 2026
- T-bill auction, 28 Oct 2026 (Nairametrics)
- OMO auction, 22 Oct 2026 (Nairametrics)
- FGN bond auction, 19 Oct 2026 (Nairametrics)
- FGN Savings Bond, October 2026 (Nairametrics)
- Eurobond yields, 29 Oct 2026 (P.M. News, from DMO)
- Interbank rates, 3 Nov 2026 (MarketForces Africa)
- Liquidity, October 2026 (Blueprint, FMDA)
- Debt Management Office
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