CBN to Auction N1.05 Trillion Treasury Bills in March

The Central Bank of Nigeria (CBN) has announced plans to auction N1.05 trillion in Treasury Bills on March 5, 2026, offering 91-, 182-, and 364-day instruments. The move comes in the wake of the CBN’s recent interest rate cut and is expected to influence yield direction in the fixed income market.

The Federal Government will allocate N100 billion in 91-day bills, N150 billion in 182-day bills, and N800 billion in 364-day bills. The auction will use the Dutch auction system, allowing market forces to determine interest rates. Investors will submit bids electronically via the CBN’s Scripless Securities Settlement System (S4) between 8:00 a.m. and 11:00 a.m. on March 4, 2026, with successful bidders receiving allotment letters the following day. Payments are due by 11:00 a.m. through accounts held with the CBN.

Under the Dutch auction framework, bills are allocated starting from the lowest yield offered, moving upward until the total issuance is fully subscribed. Investors specify both the amount and yield they are willing to accept, with aggressive bids potentially securing full allocation at lower returns, while higher yield requests may result in partial or rejected allocations.

This electronic, market-driven auction process enhances transparency and ensures that stop rates reflect actual demand. The sale also signals a shift from fixed pricing to market-determined yields, strengthening monetary policy transmission. Treasury Bills remain a key instrument for government financing and as a benchmark for interest rates, making bid flows and yield outcomes critical indicators of prevailing liquidity and policy conditions.