Nigeria’s One-Year OMO 32% Yield May Dampen Real-Sector Activities

• Highest yield on one-year bills on record
• Government seen crowding out private sector, analysts warn

 Lagos, Nigeria – The Central Bank of Nigeria (CBN) sold its one-year bills at a 32% discount on Thursday in Open Market Operations (OMO), aiming to attract investors amid soaring inflation rates. The sale followed the central bank’s decision to hike its Monetary Policy Rate (MPR) by 50 basis points to 27.25% two days earlier.