CBN Raises Treasury Bill Rates On Short And Mid-Tenors As Investor Demand Surges

The Central Bank of Nigeria (CBN) continued its interest rate adjustments on Nigerian Treasury bills at the final primary market auction conducted for the year 2025, raising spot rates on select tenors amid strong investor demand.

At the auction held midweek, the apex bank offered Treasury bills valued at ₦700 billion for subscription, spread across 91-day, 182-day, and 364-day maturities.

Investor interest remained robust, reflecting sustained appetite for fixed-income instruments following a repricing trend that began in December. Total subscriptions reached ₦1.509 trillion, more than double the amount offered.

Demand was particularly strong for the 364-day bills, where investors submitted bids worth ₦1.385 trillion against an offer size of ₦500 billion. The one-year instrument continued to attract significant interest, consistent with investors’ preference for longer-duration securities.

By contrast, demand for the 182-day Treasury bills remained subdued. Against an offer size of ₦100 billion, investors subscribed only ₦22.66 billion, falling well short of expectations.

Short-term instruments, however, performed better. The 91-day bills recorded subscriptions of ₦100.63 billion, marginally exceeding the ₦100 billion on offer.

Allotment Details

Despite offering ₦100 billion in 91-day Treasury bills, the CBN allotted ₦100.01 billion to investors seeking short-term exposure. The spot rate on the 91-day bills was increased by 20 basis points to 15.50 percent.

For the 182-day tenor, the central bank allotted ₦22.07 billion, reflecting the limited demand recorded at the auction. Nonetheless, the CBN raised the spot rate on the mid-tenor instrument by 45 basis points to 15.95 percent.

On the longer end of the curve, the CBN adjusted pricing downward after two consecutive upward revisions in previous auctions. While demand for the 364-day bills remained strong, the authority reduced the spot rate to 17.51 percent from 17.95 percent.

In total, the CBN allotted ₦581.99 billion for the one-year bills, exceeding the initial offer size in response to the high level of investor subscription.