The Central Bank of Nigeria (CBN) has allotted a total of N894.17 billion in its Treasury Bills Primary Market Auction held on April 22, 2026, as investor appetite for government securities surged significantly. The latest auction reflects strong confidence in Nigeria’s fixed income market, with demand far outpacing the initial offer.
Data from the auction shows that total subscriptions climbed to N2.36 trillion, more than triple the N750 billion offered across the 91-day, 182-day, and 364-day tenors. In response to this overwhelming demand, the apex bank increased allotments—particularly for longer-dated instruments—while keeping stop rates unchanged across all maturities.
Investor preference remained heavily skewed toward the 364-day Treasury bill, which dominated both subscriptions and allotments. The long-term instrument attracted N2.12 trillion in bids against an offer of N550 billion, with N753.45 billion eventually allotted. Meanwhile, the 182-day bill recorded N172.08 billion in subscriptions with N76.24 billion allotted, while the 91-day bill lagged behind, drawing N72.73 billion in subscriptions and N64.48 billion in allotments.
Despite the surge in demand, stop rates held steady, signaling a pause in recent yield adjustments. The 91-day bill remained at 15.95%, the 182-day at 16.19%, and the 364-day at 16.20%. Interestingly, these rates were slightly higher than secondary market yields, suggesting that investors were willing to accept marginally elevated returns in the primary market to secure allocations—especially for longer tenors.
Looking ahead, the CBN plans to raise about N3.95 trillion through Treasury bills in the second quarter of 2026, with a net issuance target of N750 billion. So far in April, total allotments have already exceeded planned offerings, highlighting the government’s increasing reliance on short-term debt instruments to manage liquidity and meet funding needs, even as borrowing costs remain elevated.
source: nairametrics