CBN to Raise N700 Billion via Treasury Bills Auction in May 2026 Amid Strong Investor Demand

The Central Bank of Nigeria (CBN) has announced plans to raise N700 billion through its Nigerian Treasury Bills (NTBs) auction scheduled for May 7, 2026. The issuance marks the first Treasury Bills offer for the month and is aligned with the Federal Government’s second-quarter domestic borrowing programme.

According to an official tender notice issued on behalf of the Debt Management Office (DMO), the auction is part of efforts to manage liquidity in the financial system while also financing short-term government obligations. The offer will be conducted using the Dutch auction system, a method commonly used to determine market-driven yields.

The N700 billion will be spread across three maturities: N100 billion in 91-day bills, N50 billion in 182-day bills, and the bulk—N550 billion—in 364-day Treasury Bills. Market participants will submit bids electronically through the Scripless Securities Settlement System (S4), with trading scheduled between 8:00 a.m. and 11:00 a.m. on May 6. Successful bidders will receive allotment notifications on May 7, with payments due by 11:00 a.m. the same day.

The CBN also noted that it retains the flexibility to adjust the offer size depending on prevailing market conditions. Analysts expect the 364-day instrument to attract the highest demand, as investors continue to position for higher yields amid shifting monetary policy expectations and tighter liquidity conditions.

This auction is one of two planned Treasury Bills issuances for May 2026, following the CBN’s quarterly borrowing calendar. With strong participation expected from pension fund managers, banks, and institutional investors, market watchers will be closely monitoring subscription levels and stop rates as key indicators of investor sentiment and interest rate direction in the months ahead.

source: nairametrics