From Adanna Nnamani, Abuja
The Central Bank of Nigeria (CBN) has announced plans to raise N700 billion through a Nigerian Treasury Bills (NTBs) auction scheduled for May 7, 2026, in line with the Federal Government’s second-quarter borrowing programme.
Details of the planned issuance were contained in an official tender notice issued by the apex bank on behalf of the Debt Management Office (DMO). The auction marks the first NTB sale for the month of May and forms part of broader efforts to manage liquidity and meet short-term funding obligations.
According to the notice, the N700 billion offering will be split across three maturities under the Dutch auction system. A total of N100 billion will be issued in 91-day bills, N50 billion in 182-day bills, and a larger portion of N550 billion in 364-day bills.
Primary dealers have been directed to submit bids electronically via the Scripless Securities Settlement System between 8:00 a.m. and 11:00 a.m. on May 6. The minimum subscription has been pegged at N50,001,000.
Successful bidders will receive allotment letters on May 7, with payment expected by 11:00 a.m. on the settlement date. However, the CBN noted that it reserves the right to adjust the total amount on offer depending on prevailing market conditions.
The May 7 auction is the first of two Treasury Bills issuances scheduled for the month. The CBN’s second-quarter calendar also outlines another auction of N650 billion slated for May 20.
Market analysts expect the 364-day instrument to attract the strongest demand due to its relatively higher yield profile. Liquidity in the financial system is also anticipated to support robust participation, particularly from institutional investors such as pension fund managers and banks.
Participants in the fixed-income market are increasingly positioning for higher yields amid evolving monetary conditions, making the outcome of the auction a key indicator of investor sentiment and interest rate direction in the near term.
Nigeria’s Treasury Bills market remains a critical tool for short-term government financing and liquidity management. For the second quarter of 2026, the NTB calendar targets a total issuance of about N3.95 trillion, with net issuance projected at N750 billion by the end of June.
Recent auction results suggest strong investor appetite. In April, the CBN exceeded its combined target of N1.45 trillion, allotting a total of N1.63 trillion across two auctions held on April 8 and April 22.
Analysts say attention will be focused on subscription levels, allotment outcomes, and stop rates from the May 7 auction, particularly for the one-year instrument, as these will provide further insight into market confidence and the government’s borrowing costs.
Leave a comment