FG Raises N1.1 Trillion in First 2026 Treasury Bills Auction Amid Strong Investor Demand

Nigeria’s Debt Management Office (DMO) successfully raised N1.144 trillion at its first Treasury Bills auction of 2026, signaling strong investor confidence in government securities. Stop rates increased across all maturities, reflecting a market trend where investors are seeking higher yields to hedge against inflation and policy uncertainties. The auction, conducted on January 7, recorded N108.17 billion for the 91-day bill, N48.23 billion for the 182-day bill, and N987.78 billion for the 364-day paper.

The one-year Treasury Bill emerged as the most sought-after instrument, with subscriptions exceeding N1.38 trillion, far surpassing the N800 billion offered. The stop rate for the 364-day tenor rose to 18.47 percent, marking the steepest increase across the curve. Market analysts noted that investors are increasingly favoring longer-term instruments that offer better yields and protection against reinvestment risks in a high-interest-rate environment.

Despite rising rates, demand for Treasury Bills remained robust, highlighting strong system liquidity and investor readiness to lock in elevated returns. The upward repricing of risk-free assets underscores the continued appeal of Nigerian government securities as a safe haven amid domestic and global economic uncertainties. This trend reinforces the government’s ability to fund its fiscal plans while offering attractive investment options to the market.

Globally, economic growth is projected to ease slightly in 2026. According to the United Nations’ World Economic Situation and Prospects 2026, global output is expected to grow 2.7 percent, down from 2.8 percent in 2025 and below the pre-pandemic average of 3.2 percent. Growth in major economies varies, with the U.S. projected at 2 percent, the EU at 1.3 percent, East Asia at 4.4 percent, and Africa at 4 percent, as high debt and climate-related risks continue to pose challenges.

The UN report also highlighted that global trade, which expanded 3.8 percent in 2025, is expected to slow to 2.2 percent in 2026 due to elevated policy uncertainty and rising tariffs. In this context, Nigeria’s strong Treasury Bills performance demonstrates investor confidence in domestic financial instruments, even as global economic headwinds persist, reinforcing the importance of government securities as a reliable investment in volatile times.

source: The Guardian