CBN Records ₦3.44 Trillion Oversubscription at Treasury Bills Auction

The Central Bank of Nigeria (CBN) has recorded strong investor demand at its latest Treasury Bills auction, with total subscriptions hitting ₦3.44 trillion, the highest level since late 2024.

At the Primary Market Auction, the apex bank offered ₦1.15 trillion worth of Treasury Bills across three maturities: ₦150 billion for the 91-day tenor, ₦200 billion for the 182-day tenor, and ₦800 billion for the 364-day bill.

Investor appetite was strongest for the one-year instrument, which attracted demand roughly four times the amount offered. Despite the heavy oversubscription, total allotment across all tenors stood at ₦1.06 trillion.

Yields on shorter-dated bills moved higher, while the one-year yield eased slightly but remained elevated. The 91-day bill cleared at 16.50 per cent, while the 182-day bill rose to 18.17 per cent. The 364-day bill recorded a marginal decline to 22.49 per cent.

Market analysts attribute the sustained high demand to a combination of aggressive government borrowing and the Central Bank’s tight monetary policy stance. With limited access to affordable foreign financing, the Federal Government has turned largely to the domestic market to finance its widening fiscal deficit.

The CBN is also maintaining elevated yields to curb inflation, absorb excess liquidity, support the naira, and attract foreign portfolio inflows.