Investors Commit N2.41tn in Nigeria’s Latest Treasury Bills Auction

Nigeria’s treasury bills auction on February 19, 2025, attracted N2.41 trillion in total bids, reflecting strong but slightly reduced demand compared to N3.22 trillion at the previous auction on February 5.

The Central Bank of Nigeria (CBN) increased allotments, particularly for the 364-day tenor, even as stop rates declined across all maturities. The drop in rates signals shifting investor expectations and heightened competition for government securities.

The 91-day bills, offered at N80 billion, received N62.14 billion in bids, up from N42.37 billion previously. The CBN allotted N34.77 billion at a reduced top rate of 17 percent, down from 18 percent. Similarly, the 182-day bills attracted N49.88 billion in subscriptions for a N120 billion offer, with N34.98 billion allotted at an 18 percent stop rate—slightly lower than the prior 18.5 percent.

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Despite traditionally high demand, the 364-day bills saw subscriptions decline to N2.3 trillion from N3.16 trillion. However, the CBN allotted N704.38 billion, up from N619.36 billion previously, with the stop rate dropping to 18.43 percent from 20 percent. Bids for this tenor ranged between 16.5 and 25 percent.

The declining yields suggest that investors are willing to accept lower returns, possibly reflecting confidence in Nigeria’s economic outlook and stable liquidity conditions. The downward trend also helps the government reduce borrowing costs while maintaining balance in the financial system.

Maturity dates for the allotted bills are set for May 22, 2025 (91-day), August 21, 2025 (182-day), and February 19, 2026 (364-day), offering options for various investment horizons.

The persistent investor interest in treasury bills underscores their appeal as a safe-haven asset amid evolving economic conditions.