The Central Bank of Nigeria (CBN) recorded strong investor demand at its Treasury Bills Primary Market Auction held on March 4, 2026, attracting total subscriptions of about N2.34 trillion, more than double the N1.05 trillion initially offered to investors.
Despite the heavy demand, the apex bank allotted N1.01 trillion across the three maturities available at the auction.
The Treasury bill sale featured the standard short-term government debt instruments with tenors of 91 days, 182 days, and 364 days.
According to the auction results released after the exercise, the government had offered N100 billion for the 91-day bills, N150 billion for the 182-day bills, and N800 billion for the 364-day bills.
Total investor subscriptions significantly exceeded the offer, reflecting strong appetite for government securities in Nigeria’s fixed-income market.
Demand was heavily concentrated on the one-year instrument. The 364-day Treasury bill alone attracted N2.13 trillion in bids against the N800 billion initially offered by the apex bank.
Out of this demand, the CBN eventually allotted about N856.03 billion to successful bidders, accounting for the largest portion of the total amount sold at the auction.
The shorter-term instruments saw relatively lower demand. The 91-day bill received subscriptions of about N80.92 billion, from which N64.27 billion was allotted, while the 182-day instrument attracted bids of N136.54 billion with an eventual allotment of N91.43 billion.
NairametricsInterest rates at the auction moved slightly upward, particularly for the one-year instrument. The stop rate for the 91-day Treasury bill settled at 15.95 percent, while the 182-day bill cleared at 16.65 percent.
The 364-day bill recorded the highest yield at 16.73 percent, representing an increase of about 0.83 percentage points compared to the previous auction’s rate of 15.90 percent.
The upward movement in yields indicates investors demanded higher returns for longer-term government securities amid the prevailing high-interest-rate environment.
Analysts interpret the strong demand for the 364-day instrument as a sign that investors are positioning for attractive returns while locking funds in longer-duration assets.
The Treasury bills auction was conducted through the CBN’s Scripless Securities Settlement System using a Dutch auction method, which allows market forces to determine the final stop rates accepted for successful bids. Settlement for the auction was scheduled for March 5, 2026.
Overall, the oversubscription of the auction reflects robust liquidity within Nigeria’s financial system and sustained investor preference for government securities as a relatively safe investment option amid ongoing monetary tightening and inflation management efforts.
Source: Nairametrics
