By Chinwendu Obienyi
The Central Bank of Nigeria (CBN) allotted N1.1 trillion worth of Nigerian Treasury Bills (NTBs) during two auction rounds held in April 2025, latest report from Afrinvest revealed at the weekend.
The report, which detailed developments in the fixed income market during the reporting month, stated that the auctions, which saw a combined offer of N1.2 trillion across 91-day, 182-day, and 364-day tenors, attracted strong investor interest, with total subscriptions reaching N2.7 trillion.
This resulted in a bid-to-offer ratio of 2.2 times, underscoring sustained demand for government securities despite prevailing tight liquidity conditions.
Specifically, the apex bank offered N100 billion in 91-day bills, N200 billion in 182-day bills, and N900 billion in 364-day bills. The longer-dated instrument recorded the highest interest, with a bid-to-offer ratio of 2.5 times, while short and mid-term instruments saw ratios of 2.2x and 0.8x, respectively.
Stop rates declined on the short and mid-tenors, with the 91-day and 182-day bills dropping to 18.0 per cent and 18.5 per cent, respectively. The 364-day bill remained unchanged at 19.6 per cent.
Meanwhile, system liquidity deteriorated significantly during the month, deepening to a deficit of N1.6 trillion from N608.3 billion in March
This was attributed to heavy drawdowns through the Standing Deposit Facility (N1.4 trillion) and primary market sales (N1.5 trillion), which overshadowed inflows from OMO and NTB repayments.
Despite the strained liquidity, money market rates remained largely stable, with the Overnight Policy Rate (OPR) flat at 26.5 per cent and the Overnight Rate (OVN) easing to 26.8 per cent.
In the secondary market, yields rose on average by 70 basis points to 20.4 per cent, with long-term instruments bearing the brunt of selloffs. Yields on long- and mid-tenor bills rose to 23.2 per cent and 20.4 per cent, respectively, while the short end saw slight demand, pushing yields down to 17.7 per cent.
Looking ahead, analysts expect improved liquidity in May due to N889.5 billion in T-bill maturities and N2.6 trillion in OMO maturities.
“This is anticipated to spur bullish sentiment in the secondary market,” the report said.