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Barely a week after raising over one trillion naira from investors, the Central Bank of Nigeria (CBN) is heading back to the Treasury bills market with plans to raise another N850 billion, signalling sustained appetite for government securities.
The fresh Treasury Bills (NTBs) auction, scheduled for March 11, 2026, will push the total amount the apex bank has mobilised within a week to nearly N2 trillion, according to an official tender notice sent to primary market dealers on behalf of the Debt Management Office (DMO).
The upcoming sale follows a massive inflow of investor funds during the March 4 auction, where the CBN raised N1.01 trillion after demand for government instruments surged.
For the March 11 exercise, the Federal Government will offer Treasury bills across three maturities. The CBN plans to sell N100 billion worth of 91-day bills, N150 billion in 182-day bills, and N600 billion in 364-day bills, with the auction conducted under the Dutch auction system.
Prospective investors are expected to submit bids electronically through the CBN’s Scripless Securities Settlement System (S4) between 8:00 a.m. and 11:00 a.m. on the auction day.
According to the apex bank, “each bid must be submitted in multiples of N1,000, subject to a minimum subscription of N50,001,000,” while authorised money market dealers may place multiple bids on behalf of themselves, institutional investors, or members of the investing public.
Successful bidders will receive allotment letters the following day, March 12, while payments must be completed through accounts held with the central bank by 11:00 a.m.
The renewed borrowing drive comes amid strong demand for short-term government securities, which has continued to push yields upward despite high liquidity within the financial system.
At the previous auction held on March 4, the CBN offered N1.05 trillion in Treasury bills across the same tenors but attracted N2.34 trillion in total subscriptions, reflecting strong investor interest.
The 364-day bill dominated demand, attracting N2.13 trillion in bids against N800 billion offered, making it the most sought-after instrument during the sale.
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Ultimately, the apex bank allotted N1.01 trillion across the three tenors.
Stop rates also climbed, settling at 15.95 percent for the 91-day bill and 16.73 percent for the 364-day bill, while the 182-day instrument remained unchanged at 16.65 percent.
The one-year Treasury bill recorded the sharpest yield adjustment, rising by 0.83 percentage points compared to the previous auction.
Market analysts say the aggressive repricing of longer-tenor instruments indicates investors are demanding higher returns amid inflationary pressures and shifting monetary conditions.
The Treasury bills auction process is now fully digitalised through the CBN’s Scripless Securities Settlement System, which manages bid submission, allocation and settlement within a single electronic framework.
According to the apex bank, the platform “reduces operational errors during the auction process” while improving transparency in the primary market for government securities.
Under the Dutch auction system used for the sale, pricing is determined by investor demand rather than fixed interest rates, with successful bidders receiving allocations based on the yields they are willing to accept.
Treasury bills remain one of the Federal Government’s key tools for short-term borrowing and liquidity management.
With investor demand still robust, market participants will closely watch the March 11 auction to see whether yields continue to climb, particularly on the longer-dated instruments that have attracted the strongest interest in recent weeks.
