NTB Subscription Falls to N6.13 Trillion Amid Low Yields and Policy Adjustments
The Nigerian Treasury Bills (NTB) market has witnessed a significant decline in investor subscription, dropping to N6.13 trillion in the first two months of 2026. Data from the Central Bank of Nigeria (CBN) shows this represents a 37% decrease from the N9.68 trillion recorded during the same period in 2025, highlighting the impact of lower yields and reduced government exposure on investor appetite.
A closer look at the breakdown reveals that January 2026 alone accounted for N4.69 trillion, reflecting a 197% increase from February 2025. Analysts note that investors continue to view NTBs as one of the safest short-term investments, given that they are government-backed instruments designed to manage liquidity and support economic stability. Despite the surge in subscription, the CBN only accepted N2.1 trillion, down 23% from the N2.72 trillion raised in the same period last year.
Interest rates on NTBs have also softened in line with market adjustments. The 364-day NTB rate fell to 16.99%, down from 18.43% in February 2025, while the 182-day and 91-day rates decreased to 16.65% and 15.84% respectively. This downward adjustment comes as the CBN scales back elevated discount rates amid strong demand, balancing the benchmark interest rate with the country’s slowly declining inflation, now at 15.05% as of January 2026.
Investor preference is increasingly leaning toward long-term NTBs, which accounted for approximately N5.8 trillion of the total subscription. Variations in stop rates across different tenors indicate investor sentiment toward short-, medium-, and long-term economic conditions. While lower rates on 182-day NTBs suggest confidence in stable interest rates, slightly higher rates on 364-day bills reflect caution about potential economic volatility.
Economists point out that recent policy moves, including a 50-basis point cut in the Monetary Policy Rate to 26.50%, are unlikely to trigger drastic yield changes immediately. Analysts at Cordros Research explain that market sentiment had already turned bullish, with institutional investors securing elevated yields ahead of policy adjustments. Looking ahead, NTB yields are expected to remain influenced by government borrowing levels, liquidity conditions, and the trajectory of inflation, while strategic diversification continues to characterize investor behavior in Nigeria’s debt market.
source: This day