The Central Bank of Nigeria (CBN) has released the results of its latest Treasury Bills (T-Bills) auction, which took place on February 5, 2025. The auction was highly successful, especially for the one-year (364-day) Treasury Bills, which attracted over N3.1 trillion in subscriptions—far more than the amount originally offered by the government.
What Are Treasury Bills?
Treasury Bills are short-term debt instruments issued by the government to raise money from the public. Investors who buy these bills are essentially lending money to the government, which pays them back with interest after a set period.
The auction featured three types of Treasury Bills with different maturity periods:
- 91-day bills (3-month maturity)
- 182-day bills (6-month maturity)
- 364-day bills (1-year maturity)
Auction Breakdown and Results
Here’s a detailed look at how each category performed:
- 91-Day Treasury Bills (3 months)
- Offered: N50 billion
- Total Subscription: N42.37 billion
- Allotted (Sold): N31.94 billion
- Bid Range: 17.00% – 22.00%
- Stop Rate (Final Yield): 18%
- Maturity Date: May 8, 2025]
- 182-Day Treasury Bills (6 months)
- Offered: N120 billion
- Total Subscription: N19.52 billion
- Allotted (Sold): N18.69 billion
- Bid Range: 17.50% – 22.00%
- Stop Rate (Final Yield): 18.5%
- Maturity Date: August 7, 2025
- 364-Day Treasury Bills (1 year)
- Offered: N500 billion
- Total Subscription: N3.16 trillion
- Allotted (Sold): N619.36 billion
- Bid Range: 19.89% – 24.30%
- Stop Rate (Final Yield): 20%
- Maturity Date: February 5, 2026
Key Takeaways from the Auction
- Strong Demand for 1-Year T-Bills: Investors were overwhelmingly interested in the 364-day bills, which saw demand exceed N3.1 trillion—far more than the N500 billion originally offered. This shows that investors prefer longer-term securities with higher returns.
- Lower Demand for Short-Term Bills: The 91-day and 182-day bills had much lower demand, with the 182-day bills attracting only N19.52 billion, far below the N120 billion offered.
- Competitive Interest Rates:
- The 91-day bills had an interest rate of 18%.
- The 182-day bills had a slightly higher rate of 18.5%.
- The 364-day bills offered the highest rate at 20%, making them the most attractive option for investors.
Why Are Investors Interested in Treasury Bills?
- Higher Interest Rates: Investors are looking for safe investments with good returns, and the current stop rates (18%–20%) make T-Bills an attractive option.
- Inflation Concerns: With inflation still a major issue, investors prefer risk-free assets like government securities to protect their money.
- Tight Market Liquidity: The high interest rates indicate that there is limited liquidity in the financial system, making government borrowing more expensive.
Government’s Strategy
The CBN’s decision to allot N619.36 billion in 364-day bills suggests that the government is strategically managing liquidity while ensuring it can finance its spending needs.
Market Implications
- The high demand for longer-term Treasury Bills suggests that investors expect interest rates to remain high in the near future.
- The government is willing to offer attractive returns to ensure it gets the funding it needs.
- This could impact the broader financial market, affecting bond yields and overall liquidity in Nigeria’s economy.
Looking Ahead
The Nigerian government has been actively issuing Treasury Bills to manage liquidity and stabilize the financial market. In the last quarter of 2024, the CBN issued N2.2 trillion worth of T-Bills as part of its ongoing economic strategy.
With inflation and tight monetary conditions still a concern, Treasury Bills will likely remain a popular investment option for both individual and institutional investors.
 has released the results of its latest Treasury Bills (T-Bills) auction, which took place on February 5, 2025.){kind=link}