The Central Bank of Nigeria (CBN) is offering ₦450 billion in Nigerian Treasury Bills (NTBs) at Wednesday’s primary market auction, the second scheduled sale under the Federal Government’s fourth-quarter 2026 issuance programme.
The October 14 auction comprises ₦50 billion in 91-day bills, ₦50 billion in 182-day bills and ₦350 billion in 364-day bills, according to the auction circular. Settlement is scheduled for Thursday, October 15.
The one-year instrument accounts for 77.78% of the total offer, highlighting the government’s preference for longer-dated Treasury bills within the short-term debt market.
The auction comes as investors assess yields following the CBN’s September decision to cut its Monetary Policy Rate from 26.5% to 23%.
At the opening auction of the quarter on October 7, the Debt Management Office (DMO), working with the CBN, allotted ₦968.47 billion against an advertised offer of ₦900 billion.
Demand was strongest for the 364-day bill, which attracted subscriptions of approximately ₦1.68 trillion against an offer of ₦700 billion. Its stop rate declined to 15.85% from 15.89% at the preceding auction.
The 91-day bill attracted subscriptions of ₦39.42 billion against an offer of ₦100 billion, with ₦38.55 billion allotted at an unchanged stop rate of 15.50%. The 182-day bill recorded subscriptions of ₦46.87 billion, with ₦44.92 billion allotted at a stop rate of 15.80%.
For Wednesday’s auction, the ₦450 billion offer substantially exceeds the ₦80.84 billion in Treasury bills scheduled to mature at Thursday’s settlement.
If the entire amount on offer is allotted, the transaction would result in a net liquidity withdrawal of approximately ₦369.16 billion, after accounting for maturing obligations. The actual impact, however, will depend on the final amount allotted.
The auction forms part of the Federal Government’s planned ₦5.40 trillion Treasury bills issuance for the fourth quarter, against approximately ₦5.429 trillion in maturities during the period.
Under the programme, ₦4.10 trillion is allocated to 364-day bills, while the 91-day and 182-day instruments are each scheduled to receive ₦650 billion.
The planned issuance is broadly aligned with refinancing maturing obligations, although actual borrowing and liquidity effects will depend on auction allotments.
Investors’ subscriptions and the stop rates established at Wednesday’s auction will provide an indication of demand for government securities following the recent monetary policy adjustment and whether yields on longer-dated Treasury bills continue to ease.
