CBN to Raise N850 Billion in Treasury Bills Auction on March 11, Boosting Weekly Debt to N2 Trillion

The Central Bank of Nigeria (CBN) is set to raise N850 billion through a fresh Treasury Bills (NTBs) auction scheduled for March 11, 2026, marking the apex bank’s second major debt sale in just one week. According to the official tender notice obtained by Nairametrics, this latest auction will bring the total amount raised within the week to around N2 trillion, underscoring the government’s heavy reliance on short-term debt instruments for liquidity management.

The auction will offer Treasury Bills across three tenors: N100 billion in 91-day bills, N150 billion in 182-day bills, and N600 billion in 364-day bills. Investors are required to submit bids electronically through the CBN’s Scripless Securities Settlement System (S4) between 8:00 a.m. and 11:00 a.m. on March 11. Each bid must be in multiples of N1,000, with a minimum subscription of N50,001,000, and authorized money market dealers may submit multiple bids on behalf of clients or for their own accounts.

This move follows the March 4 NTB auction, where the CBN raised N1.01 trillion after attracting total bids of N2.34 trillion. The 364-day bill drew the highest demand, with investors bidding N2.13 trillion against an offering of N800 billion, reflecting strong appetite for longer-tenor instruments. Yields rose in the previous auction, with the one-year bill recording the sharpest increase of 0.83 percentage points, signaling investor expectations for higher returns despite ample system liquidity.

The NTB auction process is fully digitalized through the CBN’s S4 platform, which streamlines bid submission, allocation, and settlement. The Dutch auction system used ensures pricing reflects real investor demand rather than fixed rates, enhancing transparency and reducing operational errors. Successful bidders are allocated instruments based on the yields they are willing to accept, a mechanism that has contributed to repricing across the short and long ends of the curve.

Market analysts will be closely watching the March 11 auction to gauge trends in interest rates and investor appetite. Treasury Bills remain a critical tool for the Federal Government’s short-term borrowing and liquidity management, and the outcome of this auction may influence yields, particularly on longer-tenor instruments, shaping investor strategies in Nigeria’s debt market in the coming weeks.

source: nairametrics