Nigerian T-Bills Demand Hits New High as Investors Chase High Yields with N1.23tn Bids

Investor appetite for Nigerian Treasury Bills surged sharply at the latest auction on Wednesday, November 19, 2025, as total bids for the 364-day paper climbed to an impressive N1.23 trillion against the N450 billion on offer. The rush reflects a widespread investor strategy to secure today’s high yields before the expected monetary easing in 2026 begins to pull rates lower. Despite the overwhelming demand, the Central Bank of Nigeria (CBN) held stop rates steady across all maturities.

At the auction, the CBN maintained rates at 15.30% for 91-day, 15.50% for 182-day, and 16.04% for 364-day bills. A total of N1.63 trillion was allotted across all tenors, with the bulk—more than N1 trillion—flowing into the one-year bill. Analysts say this signals the presence of strong liquidity in the financial system and a market that remains eager to lock in risk-free returns before yields begin to soften.

True yields remained attractive at 15.918% (91-day), 16.809% (182-day), and 19.104% (364-day), reinforcing the preference for longer-dated instruments. Some market watchers expressed surprise that rates were left unchanged despite massive demand, hinting that yields may have already peaked. “Investors continue to lock in the higher yields ahead of expected interest-rate moderation in 2026,” said Dr. Ayodeji Ebo, CEO of Optimus by Afrinvest.

Demand was even stronger than the November 5 auction, which recorded N1.18 trillion total bids across all tenors. This time around, the 364-day paper alone surpassed that figure. Analysts say this intensified buying reflects expectations of lower inflation and continued liquidity in the system. Commenting on the unchanged stop rates despite falling inflation, financial analyst Kalu Aja noted, “Stop rates are unchanged even as inflation is crashing. The market is passing a verdict.”

Looking ahead, analysts expect fierce bidding to continue through December as institutional investors reposition for 2026. With inflation slowing to 16.05% in October and expectations of further easing, yields may soften in the coming months. For now, however, Nigeria’s one-year treasury bills—offering true returns above 19%—remain one of the most attractive risk-free instruments for investors seeking capital preservation and stable income as they prepare for a new interest-rate cycle.

source: nairametrics