Nigeria’s domestic borrowing plan has received a significant boost as the Federal Government increased its Nigerian Treasury Bills (NTB) issuance programme for the second quarter of 2026 to N4.8 trillion, up from the initial N3.95 trillion target.
The revised issuance calendar released by the Debt Management Office (DMO) shows an additional N850 billion in planned Treasury Bills sales, representing a 21.52 per cent increase over the original programme.
The adjustment comes against the backdrop of the Central Bank of Nigeria’s (CBN) aggressive liquidity management measures, particularly through large-scale Open Market Operations (OMO) aimed at mopping up excess cash from the financial system.
Despite the increase in planned borrowing, the value of Treasury Bills scheduled to mature during the quarter remains unchanged at N3.197 trillion. However, the higher issuance level has more than doubled the government’s net new borrowing position for the quarter.
Under the revised programme, net issuance above maturities is expected to rise to N1.603 trillion, compared to the N753.21 billion initially projected. This translates to an increase of about N849.79 billion, or 112.8 per cent.
The updated schedule reveals that the entire increase in borrowing has been concentrated in June, the final month of the quarter, as auctions for April and May had already been completed before the revision was introduced.
Analysis of the issuance structure indicates a stronger preference for longer-tenor instruments. The allocation for 364-day Treasury Bills was increased from N2.85 trillion to N3.7 trillion, raising its share of total issuance from 72.2 per cent to 77.1 per cent.
Similarly, the planned issuance of 182-day bills rose from N400 billion to N500 billion, while the allocation for 91-day bills was trimmed from N700 billion to N600 billion.
The June auctions witnessed the most significant adjustments. The June 3 auction was revised upward from N700 billion to N1 trillion, while the June 17 offer recorded an even larger increase, rising from N450 billion to N1 trillion.
As a result, total planned Treasury Bills issuance for June now stands at N2 trillion, compared to the N1.15 trillion originally earmarked for the entire month.
The DMO’s decision appears to reflect confidence in market demand for government securities. At the June 3 auction, the agency offered N1 trillion worth of Treasury Bills and attracted subscriptions totaling N1.457 trillion, demonstrating strong investor appetite.
Market analysts note that the growing dominance of 364-day bills suggests the government’s preference for extending the maturity profile of its short-term borrowing, thereby reducing refinancing pressure while remaining within the Treasury Bills market.
The revised programme also comes as the CBN continues to tighten liquidity conditions. In May alone, the apex bank reportedly absorbed N3.69 trillion through a single-day OMO auction, one of the largest liquidity mop-ups in recent times.
With both Treasury Bills auctions and OMO operations drawing cash from the banking system, liquidity conditions are expected to remain tight in the near term.
Particular attention is expected to focus on the June 17 Treasury Bills auction, where only N184.79 billion in maturities will fall due against a planned N1 trillion offer.
This implies a net liquidity withdrawal of approximately N815.21 billion on the settlement date, making it one of the largest single-day liquidity absorptions through Treasury Bills in recent periods and potentially exerting upward pressure on short-term interest rates.
