The Central Bank of Nigeria (CBN) has announced a significant Treasury Bills auction worth N1.05 trillion, scheduled for Thursday, March 5, 2026, marking the first such issuance since the recent 50 basis point reduction in the Monetary Policy Rate (MPR) to 26.5%.
According to the official tender notice issued on behalf of the Debt Management Office (DMO) and obtained by Nairametrics on March 3, 2026, the offer comprises:
– N100 billion in 91-day Treasury Bills
– N150 billion in 182-day Treasury Bills
– N800 billion in 364-day Treasury Bills
The auction will be conducted using the Dutch auction system, allowing market forces to determine stop-out yields based on competitive bidding. Authorised Money Market Dealers are required to submit bids electronically via the CBN’s Scripless Securities Settlement System (S4 Web Interface) between 8:00 a.m. and 11:00 a.m. on Wednesday, March 4, 2026. Results will be announced the same day, with successful bidders receiving allotment letters on March 5 and payment due no later than 11:00 a.m. through accounts held with the apex bank.
Bids must be submitted in multiples of N1,000, with a minimum subscription of N50,001,000. Dealers may bid on their own behalf, for non-money market dealers, or for members of the investing public. The CBN retains the right to reject any bid or adjust the total amount offered depending on prevailing market conditions.
Under the Dutch auction framework, the CBN allocates bills starting from the lowest-yield bids upward until the full offer is subscribed. Successful bidders receive the yields they specified, promoting transparent, market-driven pricing and reducing the influence of administrative rate-setting.
This issuance follows the CBN’s February 2026 MPC decision to ease policy for the first time in the current cycle, reflecting confidence in sustained disinflation and macroeconomic stability. Market operators view the auction as a critical test of liquidity conditions and investor appetite in the post-rate-cut environment, with the large 364-day tranche expected to attract significant interest from banks and institutional investors seeking to lock in longer-duration returns.
The S4 electronic platform ensures efficient, error-free bid submission and enhances transparency throughout the process.
Analysts anticipate the auction outcome will provide important signals about yield expectations, liquidity absorption, and the transmission of the recent monetary easing into the fixed-income market. With tight liquidity persisting and banks actively managing surplus reserves, the results could influence short- to medium-term interest rate trends across the domestic debt market in the weeks ahead.
