Nigeria Raises NTB Offer to N4.8 Trillion as Borrowing Pressure Surges in Q2 2026

Nigeria’s debt market is seeing a sharp shift as the Debt Management Office (DMO) has expanded its Nigerian Treasury Bills (NTB) issuance programme for the second quarter of 2026. The revised plan now stands at N4.8 trillion, up from the earlier N3.95 trillion, marking a significant 21.52% increase in planned short-term domestic borrowing.

According to updated issuance calendars reviewed by financial analysts, the increase translates to an additional N850 billion in Treasury Bills supply, even as total maturing bills remain unchanged at N3.197 trillion. The adjustment means the Federal Government is now targeting a much higher level of net new borrowing within the same quarter.

A closer breakdown shows that most of the new borrowing has been pushed into June auctions, effectively “back-loading” liquidity pressure into the final month of the quarter. Combined June issuances have now jumped to N2 trillion, nearly double the original plan. The June 3 auction was revised upward from N700 billion to N1 trillion, while the June 17 auction also climbed sharply to N1 trillion.

Market observers say the revised structure signals increased reliance on short-term funding while also reflecting a strategic tilt toward longer-dated instruments. The 364-day Treasury Bill allocation rose significantly to N3.7 trillion, suggesting the government is prioritizing reduced rollover risk even as borrowing needs rise.

The expansion comes amid tighter liquidity conditions in Nigeria’s financial system, with the Central Bank of Nigeria (CBN) simultaneously intensifying Open Market Operations (OMO). Analysts warn that the June 17 auction alone could withdraw over N815 billion from the system, potentially tightening liquidity further for banks, pension funds, and money market investors.

source: nairametrics