The Central Bank of Nigeria (CBN), on behalf of the Debt Management Office (DMO), has announced an auction of N500 billion worth of Nigerian Treasury Bills (NTBs). This auction, scheduled for September 23, 2026, marks the final Treasury Bills sale for the third quarter of 2026. The offering includes N100 billion in 91-day Treasury Bills, N100 billion in 182-day bills, and N300 billion in 364-day bills. Bids can be submitted through the CBN’s S4 Web Interface between 8 a.m. and 11 a.m.
The auction's offer size remains the same as the previous one, but is below the N700 billion offered at most auctions during the quarter. Each bid must be in multiples of N1,000, with a minimum bid of N50.001 million. Dealers can submit multiple bids on their own behalf or on behalf of other dealers or members of the public. Successful bidders will receive allotment letters on September 24, and payment for successful bids must be made into the CBN account by 11 a.m. the same day.
The CBN reserves the right to reject any bid that does not meet its requirements and may adjust the amount offered based on prevailing market conditions. This auction concludes the CBN’s Q3 2026 Treasury Bills Issuance Programme, which targeted N5.8 trillion in gross issuance between July and September. The quarterly programme comprises N900 billion in 91-day bills, N900 billion in 182-day bills, and N4 trillion in 364-day bills.
About N2.64 trillion in Treasury Bills were scheduled to mature during the quarter, comprising N550.83 billion in 91-day bills, N503.19 billion in 182-day bills, and N1.59 trillion in 364-day bills. Based on the issuance and maturity schedules, the programme implied an estimated net new borrowing of about N3.16 trillion during the quarter. Before the September 23 auction, the CBN had conducted seven Treasury Bills auctions during the quarter.
The CBN has raised about N1.92 trillion through Treasury Bills auctions in September alone. At the September 2 auction, the apex bank sold N865.71 billion against an initial offer of N700 billion, while the stop rate on the 364-day bill fell to 16.84 per cent. At the September 9 auction, the CBN allotted N1.054 trillion against an offer of N750 billion, with the 364-day Treasury Bill rate declining further to 16.62 per cent.
If the September 23 auction attracts and clears the full N500 billion on offer, total Treasury Bills raised in September could exceed N2.4 trillion. Treasury Bill yields have continued to decline, with the 364-day instrument recording three consecutive rate cuts in recent auctions. The one-year Treasury Bill rate fell from 17.59 per cent on August 12 to 17.15 per cent on August 26, then to 16.84 per cent on September 2 and 16.62 per cent on September 9.
The decline in Treasury Bill yields has occurred despite strong investor demand, particularly for the 364-day bills, which have repeatedly attracted bids several times higher than the amount offered. Nigeria’s inflation rate eased marginally to 15.39 per cent in August from 15.43 per cent in July, marking the third consecutive month of decline. The CBN’s Monetary Policy Committee is scheduled to hold its 307th meeting on September 21 and 22, with the outcome expected to provide further direction on interest rates and monetary policy.
Key points
- The Central Bank of Nigeria is offering N500 billion worth of Treasury Bills in its final Q3 auction.
- The auction includes N100 billion in 91-day bills, N100 billion in 182-day bills, and N300 billion in 364-day bills.
- This auction concludes the CBN’s Q3 2026 Treasury Bills Issuance Programme, which targeted N5.8 trillion in gross issuance.
