The Central Bank of Nigeria (CBN) have generated N4.86 trillion through Nigerian Treasury Bills (NTBs) in the 1st quarter of 2026, as investors sought refuge from persistent double-digit inflation. This marked a 12.2% drop from the N5.54 trillion raised in the same period last year, despite subscriptions soaring to N14.84 trillion—N9.75 trillion above the offered amount.
Originally targeting N4.73 trillion, the CBN exceeded its goal slightly. NTBs serve as a key tool for managing banking system liquidity, sopping up excess funds to curb inflation. Spot rates on 91-day NTBs climbed to 15.95% by the March 25 auction, up from 15.80% in January, while 182-day rates dipped to 16.42% from 18.6%. This reflects the bank’s easing of high discount rates amid robust demand and falling headline inflation, now at 15.06% in February.
The strategy supports tighter monetary policy to tame inflation and steady the naira, fostering economic balance. Investors spread demand across maturities, signaling a vibrant debt market.
Q2 Outlook: N3.95tn Auction, Focus on Long-Term Bills
Looking ahead, the CBN plans N3.95 trillion in NTB auctions starting April 8, yielding a net N750 billion after N3.2 trillion in maturities. The schedule emphasizes 364-day bills (N2.85 trillion), with N700 billion in 91-day and N400 billion in 182-day instruments.
Auctions roll out in six sessions: N700 billion (April 8), N750 billion (April 22), N700 billion (May 6), N650 billion (May 20), N700 billion (June 3), and N450 billion (June 17). Maturities include N356.47 billion (April 8), N758.31 billion (April 22), N556.02 billion (May 6), and N634.5 billion (May 20), with June heavily loaded. Analysts view this long-tenor bias as a move to extend maturities, ease refinancing, and keep liquidity tight.
