Investors submitted bids totaling ₦2.34 trillion at the latest Nigerian Treasury Bills (NTB) primary market auction conducted by the Debt Management Office (DMO), more than double the ₦1.05 trillion initially offered. This reflects sustained investor appetite for government securities despite recent signals of monetary easing by the Central Bank of Nigeria (CBN).
The auction featured 91-day, 182-day, and 364-day tenors, with the DMO allotting ₦1.01 trillion, resulting in a bid-to-cover ratio of 2.3 times. Demand was particularly strong for longer-tenor bills, driving stop rates higher. The 91-day tenor rose by 15 basis points to 15.95%, the 182-day remained unchanged at 16.65%, while the 364-day tenor surged 83 basis points to 16.73%.
Analysts noted that investors are seeking higher compensation for locking funds in longer-dated naira instruments, amid persistent inflationary pressures and uncertainty about the direction of interest rates. Meristem Securities highlighted that authorities may deliberately maintain attractive stop rates to sustain participation in the debt market, even as the CBN signals a dovish policy stance.
“The strong subscription level demonstrates continued liquidity in the financial system, with banks and asset managers actively positioning ahead of potential yield shifts,” the firm said.
For the government, the auction outcome reassures that domestic investors remain willing to fund fiscal needs through the local debt market, balancing objectives of lowering borrowing costs while maintaining investor confidence. Analysts expect strong participation in upcoming NTB auctions as investors aim to lock in favorable yields before potential declines linked to policy easing.
