The Central Bank of Nigeria(CBN) reduced its Treasury Bills allotment at the Primary Market Auction held on March 18, 2026, allotting only N691.86 billion of the N1.05 trillion offered.
Despite the scaled-back allotment, investor demand remained robust, with total subscriptions reaching N3.06 trillion, highlighting strong appetite for Nigerian government securities.
The auction offered instruments across 91-day, 182-day, and 364-day tenors, with demand heavily concentrated in the 364-day bill. The long-term instrument received N2.89 trillion in subscriptions against an offer of N800 billion, with N542.64 billion ultimately allotted.
Shorter-dated bills saw moderate participation. The 91-day bill attracted N102.19 billion in subscriptions versus a N100 billion offer, resulting in N101.29 billion allotted. The 182-day instrument underperformed, drawing N66.99 billion against a N150 billion offer, with N47.94 billion allotted.
The auction, conducted via the CBN’s Scripless Securities Settlement System (S4), employed the Dutch auction method to ensure transparent price discovery. The system allows competitive bidding to determine rates based on prevailing market dynamics, improving operational efficiency and transparency.
Market analysts noted that the latest results suggest easing upward pressure on yields. Stop rates, which had previously surged—particularly on the 364-day bill at 16.73% during the March 4 auction—moderated in the subsequent auctions, reflecting improved liquidity and continued strong investor interest.
The outcome underscores a clear preference among investors for longer-term instruments while signaling a more cautious borrowing approach by the CBN in managing Nigeria’s debt costs.
