Nigeria’s Treasury Bills (NTB) market saw an extraordinary surge in investor appetite at the latest primary market auction, with total subscriptions soaring to ₦4.59 trillion—almost four times the ₦1.15 trillion offered by the Debt Management Office (DMO). The auction, conducted on Wednesday, February 4, 2026, highlights sustained demand for government securities amid excess liquidity in the financial system.
Despite the overwhelming interest, the DMO adopted a cautious borrowing stance, allotting only ₦952.60 billion across the three tenors on offer: 91-day, 182-day, and 364-day Treasury Bills. This selective allotment reflects the government’s effort to balance funding needs with cost management in a market flush with investor cash.
Investor preference was clearly tilted toward longer-dated instruments, particularly the 364-day bill, which attracted a staggering ₦4.40 trillion in subscriptions against an ₦800 billion offer. The DMO allotted ₦808.78 billion on the one-year paper and leveraged the strong demand to reduce the stop rate to 16.99%, down by 137 basis points from January’s 18.36%.
In contrast, shorter tenors recorded weaker demand. The 91-day bill drew ₦66.05 billion in bids against a ₦150 billion offer, while the 182-day bill attracted ₦123.41 billion compared to a ₦200 billion offer. Stop rates on both tenors remained unchanged at 15.84% and 16.65%, respectively, underscoring investors’ growing focus on locking in yields over a longer horizon.
Overall, the near 300% oversubscription signals persistent liquidity chasing risk-free assets, as investors continue to favor NTBs over equities and other higher-risk instruments. Analysts say the sharp drop in the one-year yield underscores the DMO’s pricing power and growing confidence in long-term government securities, marking a shift toward a more issuer-friendly market environment in early 2026.
source: nairametrics