By Boluwatife Oshadiya | March 5, 2026
Key Points
- CBN increased the discount rate on 364-day Treasury bills to 16.73 percent
- Total investor subscription reached ₦2.344 trillion, far exceeding the ₦1.05 trillion offered
- One-year bills attracted the strongest demand with over ₦2.1 trillion in bids
Main Story
The Central Bank of Nigeria (CBN) has raised the discount rate on its 364-day Treasury bills by 83 basis points to 16.73 percent, following strong investor demand at the primary market auction held Wednesday.
At the midweek auction, the apex bank offered ₦1.05 trillion worth of Treasury bills across three maturities — ₦100 billion for 91-day bills, ₦150 billion for 182-day bills, and ₦800 billion for the 364-day instruments.
Auction results showed that total subscription reached ₦2.344 trillion, more than double the amount offered, highlighting strong appetite for government securities amid tight liquidity conditions.
Despite the surge in demand, the CBN allotted ₦1.011 trillion worth of Treasury bills to investors, adjusting rates for some maturities in response to bidding patterns.
For the 91-day instrument, investors subscribed ₦80.92 billion, below the ₦100 billion offer size, while ₦64.27 billion was eventually allotted.
Demand for the 182-day bills reached ₦136.54 billion, against the ₦150 billion offered, with ₦91.43 billion allocated to successful bidders.
However, the strongest interest was recorded in the 364-day Treasury bills, where ₦2.128 trillion in bids chased the ₦800 billion offer, leading the CBN to allot ₦856.03 billion.
Yield adjustments were also recorded across the auction. The 91-day bill rate rose slightly by 15 basis points to 15.95 percent, while the 364-day bill rate climbed significantly compared with the previous auction level of 15.90 percent.
Meanwhile, the 182-day Treasury bill rate remained unchanged at 16.65 percent, the same level recorded at the previous auction.
The latest auction outcome reflects continued investor interest in government securities as portfolio managers seek relatively stable yields amid uncertain macroeconomic conditions.
What’s Being Said
“Strong demand at the auction reflects investor preference for risk-free government instruments in the current interest rate environment,” analysts at a Lagos-based investment firm said in a note following the auction results.
Market observers say the large oversubscription for one-year Treasury bills suggests investors are positioning for stable yields amid monetary tightening conditions.
What’s Next
- The next Treasury bills auction will provide a clearer signal on the direction of short-term interest rates
- Investors will watch upcoming liquidity conditions in the banking system and CBN open market operations
- Monetary policy signals from the next MPC meeting may influence future Treasury bill yields
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