The Central Bank of Nigeria (CBN) is set to roll over N650 billion in maturing Treasury Bills (T-Bills) through a Primary Market Auction (PMA) scheduled for Wednesday, October 22, 2025. The auction, conducted on behalf of the Debt Management Office (DMO), is part of the government’s ongoing strategy to manage short-term liquidity and refinance existing obligations.
Auction Details
The T-Bills will be offered across three maturities: N100 billion for the 91-day tenor, N100 billion for the 182-day tenor, and N450 billion for the 364-day tenor. The auction will employ a Dutch auction system, allowing investors to bid competitively based on their preferred interest rates, with the final stop rates determined by market demand.
Authorized Money Market Dealers will submit bids electronically via the CBN S4 Web Interface between 8:00 a.m. and 11:00 a.m. on October 22. Bids must be in multiples of N1,000, with a minimum investment of N50,001,000. Dealers can also submit bids on behalf of non-dealer clients, including corporates, fund managers, and retail investors, providing broader access to these low-risk instruments. The CBN allows multiple bids at varying rates to enhance flexibility.
Auction results will be announced on October 22, with successful bidders receiving allotment letters on Thursday, October 23. Payments for allotted amounts must be completed by 11:00 a.m. on the same day. The CBN reserves the right to adjust or reject bids based on market conditions.
Market Expectations
Analysts anticipate strong demand, particularly for the 364-day bills, which typically offer higher yields due to their longer maturity. Previous stop rates were 15.00% for the 91-day, 15.25% for the 182-day, and 15.77% for the 364-day tenors. With declining inflation and expectations of easing monetary policy, market observers predict a slight reduction in yields, reflecting improved economic conditions.
The decision to maintain the N650 billion offer size signals the CBN’s cautious approach to liquidity management, aiming to balance fiscal needs with inflation control. The auction’s outcome, particularly the stop rates, will provide insights into investor confidence and short-term yield trends heading into the fourth quarter of 2025.
Economic Significance
Treasury Bills remain a cornerstone of the CBN’s liquidity management and fiscal support strategy. For investors, the auction offers a chance to secure stable, low-risk returns amid ongoing inflation and currency volatility. The results will also serve as a barometer for market sentiment and the direction of interest rates in Nigeria’s financial markets.
