Nigeria’s Central Bank Sells ₦598.3bn Treasury Bills

The Central Bank of Nigeria (CBN) has successfully raised ₦598.33 billion through the sale of Nigerian Treasury Bills (NTBs) in its latest auction, reflecting strong investor appetite driven by excess liquidity in the financial system.

The bulk of the proceeds—approximately ₦482.62 billion—came from the 365-day tenor, which garnered the highest demand and accounted for nearly 80% of total sales.

Despite the CBN offering ₦550 billion across three tenors—₦50 billion for 91-day, ₦100 billion for 182-day, and ₦400 billion for 364-day maturities—market response exceeded expectations, with total subscriptions reaching ₦1.08 trillion, double the actual offer.

Although this represented a decline from the previous auction’s ₦1.53 trillion in bids, it still underscored robust investor interest in government securities.

READ ALSO: Putin’s Unilateral Three-Day Ceasefire With Ukraine Begins

In contrast, the 81-day bill saw the weakest demand, attracting just ₦48.4 billion in subscriptions and resulting in a modest allotment of ₦38.4 billion. This divergence in interest highlights a market preference for longer-dated instruments, likely influenced by their relatively attractive yields amid high inflation and monetary tightening.

Yield levels remained largely stable, with the 365-day bill seeing a slight uptick from 24.36% to 24.41%, while the 182-day and 91-day tenors held steady at 20.38% and 18.85%, respectively. This consistency in yield movements aligns with trends observed over the last four auctions, signaling a cautious but steady rate environment.

As of May 6, 2025, system liquidity stood at ₦1.21 trillion, buoyed further by the maturity of NTBs worth ₦287.98 billion. Combined, this liquidity was more than triple the auction’s offer, helping fuel the oversubscription.

With year-to-date Treasury bill sales now totaling ₦7.25 trillion, the Nigerian debt market continues to draw significant interest from investors seeking safe, high-yield instruments amid a volatile macroeconomic climate.