The Central Bank of Nigeria (CBN) is set to launch its largest monthly Treasury Bills (T-Bills) issuance of 2026, with plans to raise N2 trillion in July as part of an aggressive liquidity management strategy aimed at tightening money supply and supporting macroeconomic stability.
The planned issuance is significantly higher than the N647.79 billion worth of Treasury Bills scheduled to mature during the month, resulting in a projected net liquidity withdrawal of about N1.35 trillion from the banking system.
The July exercise marks the opening phase of the CBN’s third-quarter Treasury Bills issuance programme, under which the apex bank intends to issue N5.8 trillion between July and September. With only N2.64 trillion expected to mature during the quarter, the programme translates into an estimated N3.16 trillion in net new borrowing.
According to the issuance calendar, the first major auction is scheduled for July 8, when the CBN will offer N700 billion across the 91-day, 182-day and 364-day tenors. About N269.36 billion in maturing Treasury Bills will be rolled over during the same period, leaving a net liquidity withdrawal of more than N430 billion.
The central bank also plans another N600 billion auction on July 15, while no fresh issuance is scheduled for July 22, when N378.43 billion in Treasury Bills will mature, temporarily injecting liquidity into the financial system. A final N700 billion auction is slated for July 29 to absorb much of that liquidity.
Market analysts say the programme reflects the CBN’s continued reliance on Treasury Bills as a key monetary policy instrument to curb inflation, manage excess liquidity and sustain stability in the foreign exchange market.
Investor appetite is expected to remain strongest for the 364-day Treasury Bills, following robust demand recorded during the June auctions, when subscriptions for the one-year paper exceeded the amount offered by more than two times.
However, analysts note that the significantly larger volume of securities planned for July could put upward pressure on yields if demand fails to keep pace with supply.
The broader third-quarter issuance programme underscores the Federal Government’s increasing dependence on short-term domestic borrowing to finance fiscal obligations while enabling the CBN to maintain its tight monetary policy stance.
