The Central Bank of Nigeria (CBN) plans to auction N3.95 trillion in Treasury Bills (NTBs) in the second quarter of 2026, with sales scheduled to commence on April 8.
Net issuance for the quarter is projected at N750 billion, after accounting for N3.2 trillion in maturing bills due for settlement by the end of June, according to the CBN’s NTB issuance calendar obtained by Nairametrics on April 2, 2026.
The programme reflects a clear bias toward longer-dated instruments, underscoring both strong investor demand and the apex bank’s liquidity management strategy.
A breakdown shows that N2.85 trillion—representing the bulk of the issuance—will be allocated to 364-day Treasury Bills. In contrast, N700 billion and N400 billion are earmarked for 91-day and 182-day bills, respectively, indicating reduced emphasis on short- and medium-term tenors.
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Issuances will be conducted across six auctions over three months. The first two, valued at N700 billion and N750 billion, are scheduled for April 8 and April 22. This will be followed by auctions of N700 billion and N650 billion on May 6 and May 20, respectively. The final auctions, slated for June 3 and June 17, will see N700 billion and N450 billion offered.
The tilt toward longer maturities aligns with investor preference to lock in higher yields amid a high interest rate environment.
Within the same period, the CBN has scheduled N3.2 trillion in maturities, with June accounting for the largest concentration:
- April 8 and 22: N356.47 billion and N758.31 billion
- May 6 and 20: N556.02 billion and N634.5 billion
- June 3: N464.59 billion
- June 10: N144.4 billion
- June 17: N184.8 billion
- June 24: N97.75 billion
Analysts say the dominance of 364-day instruments will help extend maturities, reduce refinancing pressure, and stabilise short-term rates while sustaining tight liquidity conditions.
They also note that the programme signals a deliberate liquidity tightening stance, with potential spillover effects on both fixed income and equity markets.
“The heavy tilt toward 364-day bills reflects investor appetite for yield certainty. The scale and structure of the Q2 NTB programme signal a deliberate liquidity tightening stance by the CBN,” said Charles Fakrogha, CEO of ECL Asset Management Ltd.
Fakrogha added that sustained elevated yields could prompt portfolio rebalancing away from equities, particularly among institutional investors focused on capital preservation.
Similarly, Blakey Ijezie said yields are likely to remain elevated to support strong institutional demand, with possible implications for market liquidity and equity valuations.
“However, fundamentally strong, dividend-paying stocks may remain resilient as investors become more selective rather than exiting the market entirely,” he noted.
Both analysts highlighted that the move reinforces ongoing liquidity tightening, especially against the backdrop of persistent excess liquidity and anticipated pre-election spending ahead of 2027.
The CBN deploys Treasury Bills as a key open market operations tool to manage liquidity. When issuance exceeds maturities—as projected in Q2—liquidity is effectively withdrawn from the system, helping to curb inflationary pressures.
The preference for longer-tenor instruments also helps lock in funds for extended periods, reduce rollover risks, and support yield stability in line with the bank’s price stability mandate.
Overall, the Q2 NTB programme underscores the CBN’s focus on tightening liquidity while balancing investor demand and broader macroeconomic stability objectives.
