Nigeria’s latest Treasury Bills Primary Market Auction produced a notable reshaping of the yield landscape, with investors witnessing a mixed performance across short- and mid-term maturities. While the 91-day bill held steady at 15.30% (True Yield: 15.92%) and the 182-day paper remained anchored around 15.50% (True Yield: 16.81%), the long-term segment recorded a sudden jump that captured market attention.
The 364-day tenor climbed sharply to 17.50%, translating to a True Yield of 21.21%—a move that thrusts the one-year bill past the 20% mark and cements its position as one of the most attractive risk-free fixed-income options currently available.
The significant repricing of the long-dated bill reflects a renewed appetite among investors seeking returns that outpace inflation, as well as a preference for locking in elevated yields ahead of expected liquidity tightening toward year-end. With returns now at some of their highest levels in years, the environment presents a timely opportunity for portfolio managers to capture premium yields before interest rates potentially stabilise in early 2026.
Market participants are reminded to account for the statutory 10% Withholding Tax (WHT) on interest income when evaluating net returns relative to competing investment classes. Even with tax considerations, the 1-year paper continues to stand out within the risk-free asset category, reinforcing expectations that Treasury bill subscriptions will remain strong in the near term.
