CBN Raises N731.75bn in May T-Bills Auction as Demand Hits N2.41trn

The Central Bank of Nigeria (CBN) allotted a total of N731.75 billion at its Treasury Bills Primary Market Auction conducted on Wednesday, May 6, 2026, amid strong investor demand that significantly exceeded the amount offered across all maturities.

The auction reflected sustained liquidity in the financial system and continued appetite for government-backed fixed income securities.

Total subscriptions at the auction reached N2.41 trillion, far above the N700 billion initially offered by the apex bank across the 91-day, 182-day, and 364-day tenors. The strong oversubscription prompted the CBN to increase allotments, particularly on the one-year instrument, as investors continued to favour longer-dated securities.

The 364-day Treasury bill dominated activity at the auction, attracting the bulk of demand from investors. Subscriptions for the one-year instrument stood at N2.23 trillion against an offer of N550 billion. The CBN ultimately allotted N600.49 billion on the 364-day paper, reflecting both strong demand and the bank’s decision to accommodate investor interest beyond the initial offer size.

Read Also:

nigeria-risks-losing-investors-over-slow-business-registration-ekene-warns

nnpc-signs-mou-with-chinese-firms-to-revive-warri-port-harcourt-refineries

Market data indicated that investors remained strongly inclined toward locking in higher yields available on longer maturities, as uncertainty in the macroeconomic environment continues to shape portfolio positioning. The 364-day bill also remained the most attractive instrument in terms of yield, reinforcing its dominance in the fixed income market.

For the 182-day Treasury bill, subscriptions were recorded at N105.33 billion compared to an offer size of N50 billion. The CBN allotted N67.68 billion on the mid-tenor instrument. The 91-day bill recorded comparatively weaker demand, with subscriptions of N71.23 billion against an offer of N100 billion, while total allotment stood at N63.58 billion.

Overall demand structure indicated a clear preference for long-dated instruments, with short-term securities attracting lower investor participation. The concentration of subscriptions in the 364-day bill underscored expectations of sustained high interest rates and the desire by market participants to secure relatively higher yields for longer durations.

Stop rates across all maturities recorded marginal declines compared to the previous auction. The 91-day bill stop rate fell slightly to 15.949 percent from 15.95 percent. The 182-day bill declined to 16.14 percent from 16.19 percent, reflecting a 5 basis point reduction. The 364-day bill also eased to 16.15 percent from 16.20 percent, a decline of 4.9 basis points.

Despite the decline in stop rates, yields remained elevated across all tenors. The 91-day instrument delivered a true yield of approximately 16.62 percent, while the 182-day and 364-day bills offered yields of about 17.57 percent and 19.26 percent respectively. These yield levels continued to reinforce the attractiveness of Nigerian government securities to institutional investors seeking risk-free returns.

Market analysts observed that liquidity conditions remained strong, as reflected in the oversubscription levels across the auction. However, the relatively weaker demand for the 91-day bill indicated reduced investor appetite for short-term reinvestment opportunities, particularly in a yield environment where upside potential is more pronounced at the long end of the curve.

The auction outcome further highlighted sustained investor confidence in sovereign debt instruments, with Treasury bills continuing to serve as a key investment channel for banks, asset managers, and other institutional participants managing liquidity positions.

The CBN’s decision to allot above the initial offer size, particularly for the 364-day paper, was interpreted as a response to strong market demand and ongoing liquidity absorption objectives. The move also aligned with broader monetary operations aimed at managing short-term liquidity while maintaining stability in the fixed income market.

Overall, the results of the auction reflected continued robust participation in government securities, elevated liquidity conditions, and sustained investor preference for higher-yielding, longer-term instruments within Nigeria’s domestic debt market.