CBN Keeps Interest Rates on Nigeria Treasury Bills Unchange
The Central Bank of Nigeria (CBN) drained more cash from the banking system with oversold Treasury bills, with deposit money banks leading the subscription levels.
The Apex Bank conducted a primary market auction on Wednesday, with plans to raise N750 billion from Nigerian Treasury bills across standard tenors.
Details from the auction circular showed that the CBN offered N100 billion in Treasury bills with a 91-day maturity. Also, N100 billion worth of 182 billion was put on the table for investors’ subscriptions.
With record subscription levels reported at past auctions, the CBN planned to raise #550 billion worth of 364-day Treasury bills at the midweek auction.
Based on auction results, aggregate subscription was heavy, surpassing N750 billion offer size by more than 3 times. Total subscription submitted for the auction reached N2.364 trillion.
Out of the amount, the CBN approved an allotment of N894.614 billion to investors across the three tenors. Again, investors showed a preference for one-year paper amidst spot rates repricing.
The long tenor Naira asset attracted NGN2.119 trillion in offer subscription. However, the CBN only sold N753.448 billion worth of 1-Year Treasury bill papers at the old rate of 16.119%.
The authority raised N76.235 billion from the 182-day Treasury bill, though subscription reached N172.081 billion, surpassing the N100 billion offer size. The spot rate was unchanged at 16.19%, according to auction results.
The 91-day Treasury bills attracted N72.732 billion in subscriptions, underperforming the N100 billion offer size at the midweek auction. The CBN allotted N64.481 billion at the spot rate of 15.95%, the same as the previous auction. Tinubu Signs N68.32trn 2026 Budget, Extends 2025 Capex
