Nigeria’s Central Bank raised a total of ₦15.2 trillion from Treasury bills issued through primary market auctions in 2025, reflecting a moderation in short-term government borrowing and a recalibration of liquidity management strategies.
Market data compiled by Meristem Securities Limited show that only ₦1.50 trillion of the total amount raised represented fresh borrowing. The bulk of the funds was applied to refinancing Treasury bills that matured during the year, underscoring the apex bank’s focus on rolling over existing obligations rather than significantly expanding net debt.
Analysts noted that the net inflow from Treasury bills in 2025 is the weakest recorded in the past three years. In contrast, 2024 saw the Central Bank post a net inflow of ₦5.85 trillion, following a total allotment of ₦13.4 trillion that year, after expired instruments were refinanced.
Investor appetite for government securities remained firm, even as average yields edged lower. Benchmark Nigerian Treasury bill yields declined marginally to 17.72 percent, driven by increased investor positioning ahead of expected government borrowing requirements in 2026.
The softening of yields was largely attributed to strong demand in the short- and mid-tenor segments of the curve in the secondary market. While investors initially showed interest in longer-dated instruments during the main auction, activity later shifted toward the short and belly of the curve, compressing yields.
Secondary market trading over the review period was mixed but generally stable. Early in the week, activity was largely muted, with most maturities closing flat as investors adopted a cautious stance, resulting in limited repricing across short- and mid-tenor bills.
By midweek, the subdued tone persisted at the short end of the curve, with yields remaining unchanged across short- and medium-term instruments. However, demand strengthened at the long end, particularly for the 03 December 2026 paper, which saw its yield decline by 69 basis points to 16.20 percent. Additional yield compression was recorded on the 17 December 2026 and 10 December 2026 maturities.
Toward the end of the trading week, market activity remained light. Yields across most tenors held steady, with only marginal adjustments observed at the long end as investors maintained conservative positions amid subdued liquidity conditions.
Overall, the Treasury bills market closed the period with a slight downward bias, as the average benchmark yield declined by four basis points. Market participants expect trading to remain closely aligned with prevailing system liquidity levels in the near term.
