CBN Cuts Interest Rate on 1-Year Nigerian Treasury Bill to 16.62%
The Central Bank of Nigeria (CBN) cut the spot rate on Nigerian Treasury bills with a 1-year tenor to 16.62% at the midweek auction, details obtained by MarketForces Africa revealed,
This marked the third consecutive repricing since August 2026, when the authority lifted restrictions on retail investors’ participation in the OMO auction.
While yields on naira-denominated assets remain elevated, the authority has taken steps to reduce the cost of debt on local borrowing instruments – Bonds, OMO, and Treasury bills.
The authority offered N750 billion worth of Treasury bills for subscription, compared with the N500 billion that market players had anticipated.
Total bids submitted were about N2.642 trillion to chase the N750 billion offered for sale across standard tenors -91, 182-, and 364-day papers.
Nigerian Treasury bills with a 364-day tenor accounted for 96% of total subscription at the midweek auction, reflecting sustained preference for long-duration naira assets.
The breakdown showed that N150 billion of 91-day paper was offered, and it received N75.70 billion in subscription. The CBN allotted N70.47 billion of the shorter tenor at 16.30%, the same as the previous auction.
At the spot rate of 16.50%, the CBN allotted N22.44 billion worth of 182-day bills, which attracted N28.97 billion in subscriptions from investors, an amount less than the N100 billion offered by the authority.
Nigerian Treasury bills with a one-year tenor attracted approximately N2.537 trillion in subscriptions, compared with N500 billion offered by the CBN. The authority allotted N961.28 billion worth of one-year bills at 16.62%, down from 16.84% at the previous auction.
In total, the CBN raised N1.054 trillion from the midweek auction, compared with N2.642 trillion in total subscriptions, supported by ample liquidity in the financial system.
Nigerian Treasury Bills Yield Climbs to 18.81% Amidst Repricing
