The Central Bank of Nigeria (CBN) has adjusted its monetary policy stance by reducing the interest rate on one-year Treasury bills by 7 basis points, according to results from its midweek primary market auction.
During the auction held on Wednesday, the apex bank offered a total of ₦500 billion in Nigerian Treasury bills (NTBs) across three tenors—91-day, 182-day, and 364-day maturities—to attract investor subscriptions.
The CBN auctioned ₦50 billion worth of 91-day bills, ₦100 billion of 182-day bills, and ₦350 billion of 364-day bills. The offering attracted overwhelming demand, with total bids reaching ₦1.17 trillion—more than double the amount initially on offer.
Following the bidding process, the central bank allocated ₦615.8 billion in NTBs. A large portion of the allotment—82%—was concentrated in the one-year category, reflecting investors’ preference for longer-term investments amid expectations of sustained interest rate moderation.
For the 91-day tenor, ₦50 billion was offered, ₦72.56 billion was subscribed, and ₦71.67 billion was eventually allotted. The 182-day bills saw lower demand with only ₦46.84 billion in subscriptions, out of which ₦41.13 billion was allotted.
The highest interest came from the 364-day tenor. Despite offering ₦350 billion, the CBN received bids worth ₦1.052 trillion and allotted ₦503 billion, reflecting strong investor appetite for longer-dated securities.
While stop rates for the 91-day and 182-day bills remained steady at 18% and 18.5% respectively, the yield on the 364-day Treasury bill was reduced to 19.56% from the previous 19.63%, reflecting the central bank’s subtle policy shift amid improving economic indicators and easing inflationary pressure.
The strong subscription figures signal investor confidence in government debt instruments and underscore the ongoing demand for fixed-income assets amid a volatile global financial environment
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