The Central Bank of Nigeria (CBN), acting on behalf of the Debt Management Office (DMO), is set to offer N500 billion worth of Nigerian Treasury Bills (NTBs) at its next auction, marking the smallest single offer under the third-quarter 2026 issuance programme.
The auction, scheduled for Wednesday, September 9, will cover 91-day, 182-day and 364-day Treasury Bills, according to an Invitation to Tender issued by the apex bank.
The offer comprises N100 billion for the 91-day tenor, another N100 billion for the 182-day bill and N300 billion for the one-year instrument.
The latest offer represents a reduction from the N700 billion auctions that have characterised several of the CBN’s major Treasury Bills sales during the third quarter.
Money market dealers are required to submit their bids through the CBN S4 Web Interface between 8:00 a.m. and 11:00 a.m. on Wednesday. Successful bidders are expected to receive allotment letters on Thursday, September 10, while payment must be completed by 11:00 a.m. the same day.
Each bid must be submitted in multiples of N1,000, with a minimum bid size of N50.001 million. Dealers may submit multiple bids for themselves, other eligible dealers and members of the public.
N5.8tr Q3 programme
The latest auction is part of the N5.8 trillion Treasury Bills issuance programme for the third quarter of 2026.
The programme provides for N900 billion each in 91-day and 182-day bills and N4 trillion in 364-day instruments, with the one-year tenor accounting for about 69 per cent of planned issuance.
Treasury Bills worth N2.644 trillion are expected to mature during the quarter, implying estimated net new borrowing of about N3.16 trillion after maturities are settled.
The N500 billion offer is also coming amid a period of increased liquidity expectations in the banking system, with about N2.94 trillion in Open Market Operations (OMO) maturities expected to flow into the system this week.
The latest development follows the September 2 Treasury Bills auction, where the stop rate on the 364-day bill fell to 16.84 per cent from 17.15 per cent, despite subscriptions of N3.24 trillion against an offer of N700 billion.
The decline represented a second consecutive reduction in the one-year stop rate, following a 44-basis-point cut at the August 26 auction. Cumulatively, the rate has fallen by 75 basis points across the two auctions.
The smaller offer and declining long-term Treasury Bill yields are likely to keep the September auction under close watch, particularly as investors assess liquidity conditions and expectations surrounding monetary policy.
