The Central Bank of Nigeria (CBN) scaled back its Treasury Bills (NT-bills) issuance at its Primary Market Auction (PMA) of March 18, 2026, allotting N691.86 billion out of the N1.05 trillion initially offered, in a move that signals a more measured approach to borrowing costs.
Despite the lower allotment, investor demand remained robust, with total subscriptions rising sharply to N3.06 trillion, underscoring sustained liquidity and appetite for government securities.
The auction featured the standard 91-day, 182-day, and 364-day tenors. However, demand was overwhelmingly concentrated at the long end of the curve, particularly for the 364-day instrument, reflecting investors’ preference for locking in yields over a longer horizon.
The 364-day bill attracted N2.89 trillion in subscriptions against an offer of N800 billion, with N542.64 billion eventually allotted. In contrast, the 91-day bill recorded N102.19 billion in subscriptions versus N100 billion offered, with N101.29 billion allotted. The 182-day tenor lagged, drawing N66.99 billion in subscriptions against N150 billion on offer, with only N47.94 billion allotted.
Overall, the pattern highlights a clear tilt toward longer-dated instruments, while mid-tenor demand weakened and short-term participation remained modest.
Stop rates showed a marginal decline across most maturities, indicating easing yield pressures. The 91-day bill held steady at 15.95%, while the 182-day bill dipped slightly to 16.62% from 16.65%. The 364-day rate also moderated to 16.63% from 16.73%.
The softening in rates—particularly at the long end—indicates improving liquidity conditions and suggests that investors are becoming increasingly willing to accept lower yields in anticipation of possible monetary easing.
The auction was conducted via the CBN’s Scripless Securities Settlement System (S4), utilising a Dutch auction methodology that enables competitive bidding and market-driven price discovery.
Compared to earlier auctions in March, where yields—especially on the 364-day bill—trended upward, the latest outcome indicates that pressure on rates may be easing, supported by stronger demand and improved system liquidity.
