The Central Bank of Nigeria (CBN), on behalf of the Debt Management Office (DMO), is offering N700 billion worth of Nigerian Treasury Bills (NTBs) in its second and final auction for August 2026.
The auction, scheduled for Wednesday, August 26, covers 91-day, 182-day and 364-day Treasury Bills, with the longest-dated instrument accounting for the bulk of the offer.
The offer comprises N100 billion for the 91-day bill, N100 billion for the 182-day bill and N500 billion for the 364-day bill.
The auction is being conducted through the Dutch auction system, with money market dealers required to submit bids through the CBN S4 Web Interface between 8:00 a.m. and 11:00 a.m. on Wednesday.
The latest offer comes amid strong investor appetite for government securities and rising yields in the secondary market. The average Treasury Bills yield increased to 18.89 per cent on August 24, from 18.13 per cent on August 12.
At the previous Treasury Bills auction held on August 12, investors submitted N4.4 trillion in bids against the N700 billion advertised. Demand was particularly strong for the 364-day instrument, which attracted about N4.19 trillion in subscriptions against the N500 billion on offer.
Following the strong demand, the CBN raised the stop rate on the 364-day Treasury Bill to 17.59 per cent from 17.35 per cent at the previous auction. The stop rates for the 91-day and 182-day bills stood at 16.30 per cent and 16.50 per cent, respectively.
The latest auction is expected to provide fresh indications of investor demand and the direction of short-term borrowing costs, particularly for the one-year Treasury Bill, which has continued to attract strong demand.
The August 26 auction is also part of the CBN’s third-quarter 2026 Treasury Bills issuance programme, which targets N5.8 trillion in gross issuance between July and September. The programme comprises N900 billion in 91-day bills, N900 billion in 182-day bills and N4 trillion in 364-day bills.
The outcome of Wednesday’s auction will be closely watched by banks, pension funds, asset managers and other fixed-income investors for signals on subscription levels, allotments and Treasury Bills yields.
Strong demand for longer-dated instruments could influence the eventual stop rate on the 364-day bill, while the auction will also provide further insight into the CBN’s approach to liquidity management and domestic borrowing conditions.
