By Boluwatife Oshadiya | March 2, 2026
Key Points
- CBN plans ₦1.05 trillion Treasury bills issuance
- ₦799 billion in maturing bills due for repayment
- Average benchmark yield falls to 17.23% in secondary market
Main Story
The Central Bank of Nigeria (CBN) will open subscriptions for ₦1.05 trillion in Treasury bills at Wednesday’s primary market auction to refinance ₦799 billion in maturing securities.
According to the auction circular, the issuance will cover the standard 91-day, 182-day, and 364-day tenors. Investors are expecting repayments of ₦31.18 billion for the 91-day bills, ₦18.32 billion for the 182-day bills, and ₦619.36 billion for the 364-day instruments.
The auction comes days after the Monetary Policy Committee reduced the benchmark interest rate by 50 basis points to 26.5 percent — the first rate cut following an extended tightening cycle aimed at curbing inflation and stabilising prices.
Despite the policy shift, the CBN maintained the Cash Reserve Ratio at 45 percent for commercial banks and 16 percent for merchant banks, while keeping the Liquidity Ratio unchanged at 30 percent, signalling continued caution over system liquidity.
In the secondary market, the average benchmark Treasury yield declined by 18 basis points week-on-week to 17.23 percent, reflecting improved sentiment following the rate decision.
The Issues
The refinancing exercise highlights the CBN’s ongoing liquidity management strategy amid the transition from tightening to cautious easing. With inflation moderating and real yields remaining positive, demand dynamics are gradually shifting toward longer-duration instruments as investors anticipate further yield compression.
What’s Being Said
“Demand is expected to remain robust, especially for long-term instruments, as the recent MPR reduction underscores expectations for a gradual easing cycle and ongoing compression of yields,” Cowry Asset Management said in a note to investors.
What’s Next
- Wednesday’s auction results will determine near-term yield direction
- Market participants will assess subscription levels for signs of demand strength
- Investors will watch for guidance ahead of the next MPC meeting
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