On May 7, 2025, the Central Bank of Nigeria (CBN) held a successful Nigerian Treasury Bill (NTB) auction, raising a total of N598.3 billion despite significant market liquidity. The auction offered N550 billion across three maturities: N50 billion in 91-day bills, N100 billion in 182-day bills, and N400 billion in 364-day bills. Demand for these government securities was notably high, with subscriptions nearly double the amount on offer, though total demand decreased compared to previous auctions. Total subscriptions amounted to N1.08 trillion, down from N1.53 trillion at the prior auction.
Yields on the treasury bills remained stable for most of the maturities. The 91-day and 182-day bills held steady at 18.85 percent and 20.38 percent, respectively. However, there was a slight increase in the yield for the 364-day bill, rising from 24.36 percent to 24.41 percent. Market analysts have indicated that yields are expected to remain stable across the maturities, with some suggesting a slight downward trend due to the current liquidity conditions in the financial system.
A key factor influencing the market’s behavior is the robust liquidity situation, with system liquidity at N1.21 trillion as of May 6, 2025. This surplus liquidity, coupled with the N287.98 billion in maturing bills, provided ample funds for the market, more than tripling the N550 billion on offer. Fixed-income analysts predict that this will contribute to steady yields in the coming weeks, with a potential downward bias.
The 364-day bills proved to be the most popular in this auction, accounting for 80 percent of the total sales. A significant N482.62 billion was sold in the 365-day bills, reflecting strong investor preference for longer-term securities. In contrast, the 91-day bills saw the least interest, with only N48.4 billion in subscriptions and N38.4 billion in sales. This trend reflects the broader market preference for longer-duration assets amidst the prevailing liquidity.
As of 2025, total sales of Nigerian Treasury Bills have reached N7.248 trillion year-to-date. Despite the high demand for government securities, analysts expect that yields will remain stable in the short term, as government strategies to curb borrowing costs and investor sentiment continue to shape the market dynamics.
Source: Business day