The Central Bank of Nigeria (CBN) is set to raise N1.05 trillion through a Treasury Bills auction today, March 18, 2026, bringing the federal government’s short-term domestic borrowing to nearly N3 trillion within just two weeks.
The issuance, conducted on behalf of the Debt Management Office (DMO), offers N100 billion in 91-day bills, N150 billion in 182-day bills, and N800 billion in 364-day instruments, according to the official tender notice obtained by Nairametrics.
Bids will be submitted electronically via the CBN’s Scripless Securities Settlement System (S4) between 8:00 a.m. and 11:00 a.m. on March 18, with results announced the same day and settlement due by 11:00 a.m. on March 19. The auction employs the Dutch auction system, allowing yields to be determined by competitive investor demand and prevailing market conditions.
This latest offering follows two previous auctions earlier in March:
– On March 4, the CBN raised N1.01 trillion, with short-term yields rising to 15.95% (from 15.8%), longer tenors climbing to 16.73% (from 15.9%), and mid-tenor yields holding steady at 16.65%.
– On March 11, another N933.92 billion was secured, with rates remaining largely stable except for a slight decline in the longer tenor.
If the full N1.05 trillion is allotted today, total Treasury Bills issuance between March 4 and March 18 will reach N2.99 trillion, underscoring the aggressive pace of short-term borrowing to meet maturing obligations and finance ongoing fiscal needs.
Experts interpret the pattern as a reflection of persistent fiscal strain rather than routine liquidity management. Olubunmi Ayokunle, Head of Financial Institutions Ratings at Augusto & Co., cautioned that headline borrowing figures may overstate net debt accumulation if a significant portion is used to roll over maturing instruments. He noted delays in capital releases flagged by ministries during budget defence sessions as evidence of underlying fiscal tightness.
Blakey Okwudili Ijezie, convener of Blakey’s National Economic Conference, described the scale and frequency of issuances as “a signal of pressure, urgency, and a system stretched.” He warned that absorbing such volumes at current levels would likely push interest rates higher, potentially crowding out private sector credit, slowing business expansion, and threatening job creation.
The government’s 2026 fiscal framework anticipates a deficit of N20.12 trillion, with domestic borrowing projected to cover N14.30 trillion—more than 70% of the shortfall. Additional funding will come from external loans, multilateral and bilateral sources, privatisation proceeds, and asset sales.
The reliance on Treasury Bills and other domestic instruments highlights ongoing challenges in balancing deficit financing, liquidity management, and long-term debt sustainability amid elevated interest rates and structural economic pressures. Market participants will closely watch today’s auction outcome for indications of investor appetite, yield direction, and the evolving cost of short-term government funding.
