Nigerian Treasury Bills, NT-Bills, recorded robust investor appetite at the Central Bank of Nigeria’s Primary Market Auction, PMA, on Wednesday, with total subscriptions hitting N3.44 trillion.
The figure is far above the amount on offer and the strongest demand since December 2024.
The apex bank had offered N1.15 trillion across the three tenors, comprising N150 billion for the 91-day bill, N200 billion for the 182-day bill and N800 billion for the 364-day bill. However, total allotment across all maturities stood at N1.06 trillion.
Investor interest was most pronounced in the 364-day instrument, where demand was about four times the amount offered, underscoring continued preference for longer-dated bills with elevated returns.
The last time subscriptions reached similar levels was on December 4, 2024, when demand exceeded N5 trillion amid a period of high inflation and elevated interest rates.
Yields were mixed across the curve. The 91-day bill rose to 16.50 percent, while the 182-day bill’s true yield increased to 18.17 percent from 17.99 percent at the previous auction. In contrast, the 364-day bill eased slightly, with its true yield dipping to 22.49 percent from 22.65 percent, though it remains highly attractive to investors.
This has been attributed to the strong demand and elevated yields due to aggressive government borrowing alongside the CBN’s tight monetary policy stance. Nigeria’s 2026 fiscal year is projected to run a deficit of N23.85 trillion, with limited access to affordable foreign financing pushing the federal government to rely heavily on the domestic market.
Accordingly, the first-quarter 2026 issuance calendar targets borrowing of about N7.55 trillion within three months, a volume that continues to exert upward pressure on yields as the government competes for investor liquidity.