By Boluwatife Oshadiya | March 19, 2026
Key Points
- CBN lowers rates on 182- and 364-day Treasury bills
- Total subscription hits N3.06 trillion against N1.05 trillion offer
- Apex bank allots only N691.87 billion, rejecting bulk of bids
Main Story
The Central Bank of Nigeria (CBN) reduced stop rates on mid- and long-tenor Treasury bills at its midweek primary market auction, despite overwhelming investor demand for government securities.
Auction results showed total subscriptions reached N3.063 trillion, significantly exceeding the N1.05 trillion offered. However, the CBN allotted only N691.87 billion, effectively rejecting over 77% of total bids in a move analysts interpret as an effort to manage borrowing costs.
For the 91-day bills, the CBN sold N101.29 billion at 15.90%, maintaining the previous rate. Demand for this tenor slightly exceeded the N100 billion offer.
The 182-day bills recorded weaker demand, with subscriptions of N66.99 billion against an offer of N150 billion. The apex bank allotted N47.94 billion at 16.62%, marginally lower than the previous 16.65%.
Demand was strongest at the long end, where N2.893 trillion chased the N800 billion 364-day offer. Despite this, the CBN allotted only N542.64 billion and reduced the stop rate to 16.63% from 16.72%.
The Issues (Optional)
The auction reflects a growing divergence between investor appetite and the CBN’s cost-management strategy. While investors are locking into high-yield government instruments amid inflation uncertainty, the apex bank appears focused on gradually easing rates to reduce its domestic borrowing burden.
What’s Being Said
“The strong demand signals excess liquidity in the system, but the CBN is clearly prioritising cost control over full subscription,” said a fixed income analyst at a Lagos investment firm.
“Rate moderation suggests expectations of inflation easing, though real returns remain attractive for institutional investors,” another market participant noted.
What’s Next
- Investors will monitor secondary market yields for repricing trends
- The CBN’s next auction strategy will indicate direction on interest rates
- Inflation data and MPC decisions will shape future yield movements
Bottom Line:
The CBN is deliberately tightening supply to force yields lower, signalling a cautious shift toward cheaper domestic borrowing even as investor demand remains elevated.
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