The Central Bank of Nigeria (CBN) has lowered the stop rate on its one-year Treasury Bill after an overwhelming response from investors pushed total subscriptions to an impressive ₦3.62 trillion at its latest primary market auction. The massive demand, which far exceeded the ₦700 billion on offer, underscores growing investor confidence in long-term government securities despite the slight reduction in returns. The move also highlights the strong appetite for safe investment options in Nigeria’s evolving financial market.
The 364-day Treasury Bill emerged as the clear favorite among investors, attracting an astounding ₦3.38 trillion in bids against an initial offer of ₦500 billion—almost seven times the amount available. Responding to the surge in demand, the apex bank allotted more than ₦1.02 trillion for the one-year instrument, contributing to a total allocation of approximately ₦1.25 trillion across the three maturities. This significant oversubscription reflects the willingness of institutional investors to lock in long-term investments even at slightly lower yields.
Following the auction, the CBN reduced the stop rate on the 364-day Treasury Bill to 17.35 percent, down from 17.66 percent recorded at the previous sale. Analysts say the decline signals improved liquidity across Nigeria’s financial system, allowing investors to accept lower returns in exchange for the security and stability offered by government-backed instruments. Bid rates for the one-year bill ranged from 16.98 percent to 20.00 percent, demonstrating competitive pricing and sustained market interest.
The shorter-term Treasury Bills also recorded healthy demand. The 91-day bill attracted subscriptions of ₦135.74 billion against a ₦100 billion offer, with the stop rate remaining unchanged at 16.30 percent. Likewise, the 182-day bill received ₦104.74 billion in bids and maintained its stop rate of 16.50 percent despite a wide range of bid submissions. While investors continued to participate across all maturities, market activity remained heavily concentrated on the one-year instrument, extending a trend observed throughout July.
The latest auction concludes the CBN’s Treasury Bill sales for July and forms part of its ambitious ₦5.8 trillion gross issuance programme for the third quarter of 2026. Financial analysts believe the sustained demand reflects confidence in Nigeria’s fixed-income market and the attractiveness of Treasury Bills amid prevailing economic conditions. Although the stop rate has declined, the one-year Treasury Bill still offers one of the most competitive returns in the market, with its effective yield remaining close to 21 percent, making it the preferred investment choice for institutional investors seeking stable and reliable returns.
source: punch
