The Central Bank of Nigeria (CBN) has announced an auction of N900 billion worth of Treasury Bills on behalf of the Debt Management Office (DMO). This auction marks the first Nigerian Treasury Bills (NTBs) sale of the fourth quarter 2026. The CBN will offer N100 billion each in 91-day and 182-day bills and N700 billion in 364-day bills, with settlement scheduled for Thursday, October 8, 2026.
The auction is part of efforts to manage liquidity in the financial system and provide investors with an opportunity to buy government securities. It also supports the Federal Government’s short-term financing needs. According to the auction notice, the indicative NTB issuance calendar will be released in due course, outlining details such as the amount the government plans to offer and the maturity dates of old bills.
The 364-day bill accounts for N700 billion or approximately 77.8% of the total amount being offered at the October 7 auction. The shorter 91-day and 182-day instruments each account for N100 billion, representing about 11.1% apiece. This structure maintains the DMO’s recent emphasis on the longer-dated Treasury bill, which has attracted the bulk of investor demand at recent auctions.
The one-year stop rate has declined steadily across recent auctions, sitting at 15.89% at previous auctions following a sustained decline in rates and the Monetary Policy Committee’s 350-basis-point reduction in the Monetary Policy Rate to 23.00%. The 364-day stop rate has fallen 146 basis points over four consecutive auctions from 16.84% on September 2.
The DMO allotted approximately N8.14 trillion across eight NTB auctions during the third quarter, about 40.34% above the N5.8 trillion targeted for the period. Liquidity conditions remain supportive of fixed-income demand entering the October 7 auction, with investors submitting N12.14 trillion in bids at the final two September OMO auctions against N3.4 trillion offered.
The larger N900 billion NTB offer provides additional capacity to absorb investor demand, particularly for the 364-day instrument. Investors can access NTBs through banks and licensed investment platforms, subject to their respective minimum bid requirements. Attention at the October 7 auction will centre on demand for the N700 billion one-year offer and whether its 15.89% stop rate declines further.
The auction results are expected to show whether the recent decline in stop rates continues into the fourth quarter. The amount of Treasury bills maturing around the October 7 auction is not provided, so the net liquidity effect cannot yet be determined.
Key points
- The Central Bank of Nigeria offers N900 billion worth of Treasury Bills.
- The 364-day bill accounts for N700 billion of the total offer.
- The one-year stop rate has declined steadily across recent auctions.
