CBN to Open N1.15Tn Nigerian Treasury Bills for Subscription
The Central Bank of Nigeria (CBN) is scheduled to open N1.15 trillion worth of treasury bills for investor subscription on Wednesday, according to its primary market auction plan for February.
The amount would be split across 91-day, 182-day, and 364-day treasury bills amidst spot rates adjustments seen at the previous auctions, and changing inflation outlook.
Demand is anticipated to remain strong due to a healthy liquidity level in the financial system this week. The market expects about N6 trillion inflows to enhance the funding profile, suggesting possible discount rate tightening ahead of inflation.
In the Treasury space, yield movements were mixed despite funding pressures. Nigerian True Treasury bills yield (NITTY) rates trended downward as investors positioned ahead of the next primary market Treasury bills auction and limited activity in the secondary segment, Cowry Asset Limited said.
The investment firm said the treasury bills market was bullish with strong demand concentrated at the long end of the curve, driving a 35bps decline in average yields, reflecting persistent duration appetite even amid tight liquidity.
Liquidity management remained the dominant theme in the market, with the Central Bank of Nigeria’s aggressive mop-up effort via three OMO auction sessions.
On Tuesday, N600 billion was offered across the 210-day and 350-day maturities, attracting subscriptions of N4.9 trillion; however, no allotments were made, indicating resistance to prevailing bid levels.
Thursday’s auction recorded exceptionally strong demand, particularly at the longer tenor. The 348-day paper drew N4.57 trillion in bids against a N300 billion offer, while the 208-day bill garnered N1.36 trillion.
Despite an initial total offer of N600 billion, the CBN executed an aggressive liquidity mop-up, allotting N3.79 trillion in total, with the 348-day tenor accounting for N3.70 trillion of sales.
At Friday’s OMO auction held on January 30, 2026, two maturities—207-day and 354-day bills—were offered at N300 billion each.
The 207-day instrument, maturing August 25, 2026, received subscriptions of N396.14 billion with bid yields ranging from 17.6990% to 19.0400%, but no sale was recorded, suggesting continued reluctance by the issuer to accommodate higher short-end rates, Cowry Asset Limited said.
Conversely, the 354-day bill maturing January 19, 2027, attracted N2.17 trillion in subscriptions, with bids spanning 17.1500% to 18.4400%.
The instrument cleared at a stop rate of 17.25%, and total allotment reached N2.11 trillion, far exceeding the initial offer size and reinforcing the strong investor bias toward longer-dated OMO instruments. AXA Mansard Profit Surges by 117% in 2025, EPS Hits 279k
