The Central Bank of Nigeria (CBN) has allocated a total of ₦598.33 billion in Nigerian Treasury Bills (NTBs) across three maturities, with the 364-day tenor accounting for a significant portion of the allotment, as investor appetite remains strong.
The auction, conducted on Wednesday, witnessed robust oversubscription despite a decline in total subscriptions to ₦1.08 trillion, compared to ₦1.53 trillion recorded at the previous auction.
According to data from the Debt Management Office, the apex bank initially offered ₦550 billion, comprising ₦50 billion in 91-day bills, ₦100 billion in 182-day bills, and ₦400 billion in 364-day bills. However, final sales exceeded the target, with ₦482.62 billion worth of the 364-day instruments alone being allotted representing approximately 80% of total sales.
The shortest tenor, the 91-day bill, drew the least interest, with subscriptions of just ₦48.4 billion, out of which ₦38.4 billion was eventually sold. This reflects waning investor interest in ultra-short-term securities amid rising returns on longer-dated instruments.
Yields Remain Steady Across Tenors
Yields held steady across most maturities, consistent with recent trends, except for a marginal uptick in the 364-day paper. The yield on the one-year bill edged up slightly to 24.41%, from 24.36%, while the 182-day and 91-day bills held firm at 20.38% and 18.85% respectively.
Analysts note that yields have remained relatively flat over the last four auctions, signaling a cautious stance from the central bank amid evolving macroeconomic conditions.
Excess Liquidity Fuels Demand
As of May 6, 2025, system liquidity stood at ₦1.21 trillion, boosted further by maturing bills worth ₦287.98 billion over three times the value of the NTBs on offer. This liquidity glut continues to drive high demand for government securities, especially among institutional investors seeking safe, high-yield placements.
With this latest auction, the total NTB sales by the CBN year-to-date now stand at a staggering ₦7.25 trillion, underscoring the government’s increased reliance on domestic borrowing to finance fiscal operations and manage cash flow.
