The Debt Management Office (DMO) concluded its Nigerian Treasury Bills (NT-Bills) auction on December 3, 2025, raising a total of N709.621 billion across all tenors. Investors showed the strongest appetite for the 364-day T-Bill, which emerged as the market favorite amid rising yields. The auction offered N100 billion, N150 billion, and N450 billion for the 91-day, 182-day, and 364-day bills, respectively.
While the 364-day bill dominated the auction, the shorter tenors saw weaker demand. The 91-day paper attracted N44.17 billion in subscriptions, leading to an allotment of N42.80 billion, while the 182-day bill received N33.38 billion in bids, with an allotment of N30.36 billion. Both tenors cleared at rates similar to the previous auction, at 15.30% for the 91-day and 15.50% for the 182-day bill.
The 1-year T-Bill drew N697.29 billion in subscriptions, far exceeding its N450 billion offer. To meet investor demand, the DMO allotted N636.46 billion, representing nearly 90% of total auction proceeds. The stop rate for this tenor surged to 17.50%, up from 16.04% in the previous auction—a 1.46% increase—signaling one of the most attractive risk-free investment opportunities currently available.
Dr. Ayodeji Ebo, CEO of Optimus by Afrinvest, noted that the effective yield for the 364-day bill could reach 21.21%, offering near 19% after withholding tax. This makes it an appealing option for investors seeking high-yield, low-risk investments to lock in returns before year-end. Conversely, shorter tenors may suit investors prioritizing liquidity over yield.
The auction results highlight a growing appetite for long-duration government securities among Nigerian investors. With the 364-day bill achieving substantial oversubscription, it provides a rare opportunity to secure elevated returns in a risk-free instrument. Fixed-income portfolios may benefit from allocating capital to this tenor, while more conservative investors may prefer the 91-day and 182-day bills for shorter-term exposure.
source: nairametrics