The Central Bank of Nigeria (CBN) saw robust appetite for government securities in its latest Treasury Bills Primary Market Auction on March 4, 2026, with total bids hitting N2.34 trillion against an offered amount of N1.05 trillion. In the end, the apex bank allotted N1.01 trillion across the standard 91-day, 182-day, and 364-day tenors.
The results, announced at the close of business on Wednesday, highlight continued strong interest from investors in short-term government paper, particularly at the longer end of the maturity spectrum, even as the broader interest rate environment remains elevated following recent policy adjustments.
Demand was heavily concentrated on the 364-day bill, which pulled in a massive N2.13 trillion in subscriptions far exceeding the N800 billion on offer and resulting in an allotment of N856.03 billion. This skew toward the one-year instrument reflects investors’ preference for locking in higher yields amid expectations around future rate movements and duration risk.
In comparison, the shorter maturities drew more modest interest. The **91-day bill** attracted **N80.92 billion** in bids (against **N100 billion** offered), with **N64.27 billion** allotted, while the **182-day bill** saw N136.54 billion subscribed (versus N150 billion offered) and N91.43 billion allotted.
Stop rates, which indicate the highest accepted yield, settled as follows:
91-day: 15.95% (up 0.15 percentage points from the prior auction)
182-day: 16.65% (unchanged)
364-day: 16.73% (up sharply by 0.83 percentage points from 15.90%)
The notable jump in the one-year stop rate points to investors seeking greater compensation for committing funds over a longer horizon, possibly factoring in potential shifts in monetary policy or lingering uncertainties in the macro environment. Overall, the upward pressure on yields, especially at the long end, underscores a market still demanding attractive returns despite the Monetary Policy Committee’s recent 50 basis point cut in the benchmark rate to 26.5% in late February.
The auction was conducted electronically via the CBN’s Scripless Securities Settlement System (S4), employing the Dutch (multiple-price) auction method for transparent and efficient price discovery. Successful bidders pay their quoted rates, with settlement occurring on March 5, 2026.
This outcome comes against a backdrop of tight liquidity conditions earlier in the year, including significant mop-ups by the CBN, yet it demonstrates resilient demand for risk-free assets like Treasury bills. Investors appear to favor longer tenors for better yield pickup, even as shorter ones see relatively softer bidding.
Market participants will keep a close eye on upcoming auctions and liquidity trends to see if this pattern holds or if evolving expectations around inflation, reserves, and policy direction begin to influence yield dynamics further. For now, the oversubscription more than double the offer signals sustained confidence in Nigeria’s fixed-income market.
