By Boluwatife Oshadiya | August 24, 2026
Key Points
- CBN will offer ₦700 billion in Treasury bills across 91-, 182- and 364-day maturities
- The 364-day bill accounts for ₦500 billion of the offer as investors seek longer-duration naira assets
- Analysts expect strong demand but anticipate lower auction rates amid easing inflation and high system liquidity
Main Story
The Central Bank of Nigeria (CBN) is scheduled to offer ₦700 billion in Treasury bills at its primary market auction on Wednesday, with the one-year instrument expected to attract the strongest demand.
According to the auction circular, the offer comprises ₦100 billion each in 91-day and 182-day Treasury bills, while the 364-day instrument accounts for ₦500 billion of the total.
The large allocation to the one-year bill comes as banking system liquidity remains elevated, strengthening investors’ capacity to take positions in naira-denominated fixed-income assets.
Market analysts expect competition for the longer tenor to remain strong as investors seek to lock in relatively attractive yields before potential repricing.
Cowry Asset Management Limited said demand for the 364-day bill is likely to remain firm, particularly given its dominant share of the auction offer.
“Given the dominance of the longer tenor in the offer structure, competition for the 364-day bill is expected to remain strong as investors seek to secure relatively high yields for an extended period,” Cowry Asset Management Limited said.
The firm added that auction rates were expected to remain broadly aligned with prevailing secondary-market levels, although strong demand could moderate yields.
Investor positioning has also been influenced by the easing of headline inflation to 15.43% in July 2026. With nominal Treasury bill yields remaining above inflation, fixed-income assets continue to offer positive real returns.
In the secondary market, the average Treasury bill yield settled at 18.57%, up three basis points week-on-week. Cowry Asset Limited reported mild bullish sentiment around the middle of the yield curve, supported by demand for relatively attractive maturities, while the short and long ends faced bearish pressure.
What’s Being Said
“We expect rates at the auction to remain broadly aligned with prevailing secondary-market levels, although strong demand could moderate yields at the margin,” Cowry Asset Management Limited said.
The assessment reflects expectations that elevated liquidity will support demand while easing inflation and recent repricing in the bond market could place downward pressure on Treasury bill yields.
What’s Next
The CBN will conduct the ₦700 billion primary market auction on Wednesday across the three maturities.
Investors will closely monitor the clearing rates, particularly for the 364-day bill, to determine whether strong demand results in lower yields relative to prevailing secondary-market levels.
Bottom Line
The Bottom Line: The ₦700 billion auction gives investors a substantial opportunity to lock in naira yields, but strong liquidity and easing inflation increase the likelihood of downward pressure on rates. The ₦500 billion one-year allocation will be the clearest test of how strongly investors still value longer-duration Treasury bills.
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