The Central Bank of Nigeria (CBN) successfully raised N9.27 trillion from Nigerian Treasury Bills (NTBs) across auctions held between January and August 2024.
NTBs, considered one of the safest investment options backed by the Nigerian government, serve to cover budget deficits and fund national projects.
The significant funds raised reflect strong investor confidence in Nigerian debt instruments, with a notable preference for longer maturities in search of higher returns.
During this period, the CBN offered N4.59 trillion in NTBs but saw an overwhelming subscription of N30.04 trillion, indicating a robust appetite for these short-term securities.
The increase in investor participation, especially for longer-tenor NTBs, reflects a desire for stability amid Nigeria’s economic challenges.
The central bank’s monetary tightening, characterized by higher interest rates and aggressive NTB auctions, is part of broader efforts to combat inflation and stabilize the foreign exchange market.
A key driver of investor interest has been the rising stop rates, which reached 22.1% for 364-day bills in July 2024, the highest rate this year.
The stop rate variations across tenors provide insight into investor sentiment, with higher rates on long-term bills signaling cautious optimism about future economic stability.
Investors appear more comfortable locking in higher yields on longer-term NTBs, reflecting both confidence in the government’s ability to manage debt and concerns over potential economic volatilities.
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