The Central Bank of Nigeria (CBN) has announced plans to raise N700 billion through a Nigerian Treasury Bills (NTBs) auction scheduled for May 7, 2026, marking the first issuance for the month in line with its second-quarter (Q2) borrowing calendar.
The planned auction was disclosed in an official tender notice issued by the apex bank on behalf of the Debt Management Office (DMO).
The move forms part of the Federal Government’s broader domestic borrowing strategy for Q2 2026, which includes multiple NTB issuances aimed at managing liquidity and funding short-term obligations.
According to the tender notice, N700 billion will be offered across three maturities using the Dutch auction system. Specifically, N100 billion will be issued in 91-day Treasury Bills, N50 billion in 182-day bills, and N550 billion in 364-day bills.
Dealers are required to submit bids electronically via the Scripless Securities Settlement System (S4) between 8:00 a.m. and 11:00 a.m. on May 6, with a minimum subscription set at N50,001,000.
Allotment letters will be issued to successful bidders on May 7, while payments are due by 11:00 a.m. on the settlement date.
However, the CBN noted that it reserves the right to adjust the total amount on offer depending on prevailing market conditions.
The May auction is the first of two scheduled NTB issuances for the month, following the CBN’s Q2 calendar, which outlines planned offerings of N700 billion and N650 billion on May 6 and May 20, respectively.
The 364-day Treasury Bill is expected to attract the strongest demand due to its relatively higher yield. Liquidity conditions in the financial system are also likely to support robust participation from institutional investors, particularly pension fund managers and banks.
Market participants are increasingly positioning for higher yields amid evolving monetary conditions, with analysts noting that the outcome of the auction will provide key signals on yield direction and investor sentiment as the second quarter progresses.
Nigeria’s Treasury Bills market remains a critical instrument for short-term government financing and liquidity management. The Q2 2026 NTB calendar targets total issuances of about N3.95 trillion to meet funding needs, with net issuance projected at N750 billion by the end of June.
In April, however, the CBN exceeded its N1.45 trillion issuance target, allotting N731.38 billion and N894.36 billion from two auctions held on April 8 and April 22, respectively. This brought total allotments for the month to approximately N1.63 trillion.
Market watchers are expected to focus on subscription levels, allotments, and stop rates—particularly for the 364-day instrument—as key indicators of investor confidence, interest rate expectations, and the government’s near-term borrowing exposure.
