The Central Bank of Nigeria (CBN) allotted a total of N1.19 trillion in Treasury Bills at its latest primary market auction after investors submitted overwhelming bids for the 364-day instrument, underscoring continued demand for longer-tenor government securities.
Auction results released by the apex bank showed that while the CBN offered a combined N600 billion across the 91-day, 182-day and 364-day tenors, total subscriptions climbed to N3.03 trillion, representing a bid-to-offer ratio of more than five times. The one-year Treasury Bill accounted for the bulk of investor interest, attracting N2.87 trillion in subscriptions against an offer of N400 billion.
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The CBN eventually allotted N1.062 trillion for the 364-day bill—well above the initial offer—bringing total allotments across all maturities to N1.191 trillion. The one-year paper represented about 89.2 per cent of the total amount allotted.
In contrast, demand for shorter-term instruments remained weak. The 91-day Treasury Bill attracted subscriptions of N94.96 billion, below the N100 billion on offer, while the 182-day bill recorded N68.03 billion in bids against the same offer size, leaving both tenors undersubscribed.
The stop rate on the 364-day bill eased slightly to 17.66 per cent from 17.70 per cent recorded at the previous auction on July 8. Meanwhile, the stop rates for the 91-day and 182-day bills remained unchanged at 16.30 per cent and 16.50 per cent, respectively.
Market analysts say the auction highlights investors’ preference for locking in relatively higher yields over a longer period amid Nigeria’s inflationary environment. With June 2026 headline inflation at 15.91 per cent, the one-year Treasury Bill continues to offer a positive real return, making it the preferred choice for institutional investors.
Settlement for the auction is scheduled for July 16, with the 91-day, 182-day and 364-day instruments maturing on October 15, 2026, January 14, 2027, and July 15, 2027, respectively.
