The Central Bank of Nigeria, acting on behalf of the Debt Management Office, is offering N700 billion in Nigerian Treasury Bills across the 91-day, 182-day and 364-day tenors in the second and final auction of August 2026.
According to the Invitation to Tender obtained by Nairametrics, authorised Money Market Dealers were required to submit bids through the CBN S4 Web Interface between 8:00 a.m. and 11:00 a.m. on Wednesday, August 26, 2026. The offer comprises N100 billion of the 91-day bill, N100 billion of the 182-day bill and N500 billion of the 364-day bill. The sale is being conducted under the Dutch auction system, continuing the apex bank’s preference for longer-dated paper that has characterised its Treasury Bills strategy through much of the third quarter.
Auction Structure and Timeline
Dealers may submit multiple bids for their own accounts or on behalf of non-Money Market Dealers and members of the public. Each bid must be in multiples of N1,000 and is subject to a minimum of N50,001,000.
Results were expected to be announced on Wednesday, August 26, with allotment letters issued on Thursday, August 27. Payment for successful bids is due to the Central Bank no later than 11:00 a.m. on the same day. The apex bank reserves the right to reject any bid or adjust the amount on offer in line with market conditions.
Context of the August Calendar
This is the second scheduled Treasury Bills auction of the month, following an earlier cancellation and one completed sale. The Central Bank had planned an initial August auction for Thursday, August 6, with bids due on August 5. That sale was withdrawn shortly after the bank absorbed a combined N4.69 trillion from the banking system through consecutive Open Market Operations auctions on August 3 and 4, raising concerns that another N700 billion withdrawal could over-tighten liquidity.
The Central Bank returned to the primary market on August 12 with another N700 billion offer. That auction attracted N4.4 trillion in total subscriptions. The 364-day bill alone drew N4.19 trillion against its N500 billion allocation more than eight times oversubscribed. Instead of easing the one-year stop rate as it had at the two preceding auctions, the bank raised it by 24 basis points to 17.59 per cent from 17.35 per cent and allotted N1.26 trillion on that tenor. The 91-day and 182-day bills remained unchanged at 16.30 per cent and 16.50 per cent, with N148.57 billion and N47.48 billion allotted respectively. Combined allotments reached approximately N1.456 trillion against the N700 billion advertised.
Because the August 5/6 auction was cancelled, the August 12 sale stood as the only completed Treasury Bills auction of the month before the latest offer.
Rate Direction and Liquidity Backdrop
The August 12 rate increase reversed the easing trend seen through much of July, when the Central Bank reduced the 364-day stop rate at both the July 15 and July 29 auctions despite similarly strong demand, bringing it as low as 17.35 per cent by month-end. The hike occurred even though the banking system was flush with liquidity, including a reported N2.48 trillion OMO repayment on August 11 that formed part of a broader N5.21 trillion net injection between August 4 and 11.
The current auction forms part of the Central Bank’s third-quarter 2026 Treasury Bills issuance programme, which targets N5.8 trillion in gross issuance between July and September. August 12, August 26 and September 2 are among the six largest sessions in the calendar, each offering N700 billion.
Market participants will be watching closely to see whether the 364-day stop rate resumes its earlier downward path or maintains the firmer stance signalled on August 12. Analysts continue to expect the Monetary Policy Committee to begin cutting rates at its September meeting. Given the recent pattern of allotments well above advertised sizes, particularly on the longest tenor, the latest N700 billion offer could push August’s cumulative total considerably higher than N2 trillion once final figures are known.
