The Central Bank of Nigeria (CBN) has announced plans to raise ₦700 billion through a Nigerian Treasury Bills (NTBs) auction scheduled for May 7, 2026, as part of the Federal Government’s domestic borrowing programme for the second quarter of the year.
The auction, conducted on behalf of the Debt Management Office, will mark the first Treasury Bills issuance for May and aligns with the government’s Q2 2026 borrowing calendar aimed at managing liquidity and financing short-term obligations.
According to the CBN tender notice, the ₦700 billion offer will be split across three maturities using the Dutch auction system. These include ₦100 billion in 91-day bills, ₦50 billion in 182-day bills, and ₦550 billion in 364-day Treasury Bills.
The 364-day instrument is expected to attract the strongest investor demand due to relatively higher yields in the market.
Dealers are required to submit bids electronically via the Scripless Securities Settlement System between 8:00 a.m. and 11:00 a.m. on May 6, with a minimum subscription threshold set at ₦50,001,000. Successful bidders will receive allotment letters on May 7, with payments due by 11:00 a.m. on settlement day.
The apex bank, however, noted that it retains the discretion to adjust the total amount offered based on prevailing market conditions.
The May issuance is part of a broader schedule that includes a second auction later in the month, reflecting the government’s continued reliance on short-term debt instruments to meet funding needs.
Market analysts expect strong participation from institutional investors such as pension fund administrators and financial institutions, driven by evolving monetary conditions and yield expectations.
Treasury Bills remain a key instrument for government financing and liquidity management in Nigeria’s fixed income market.
For Q2 2026, the NTB calendar targets approximately ₦3.95 trillion in total issuances, while the DMO has projected net issuance of ₦750 billion by the end of June.
Recent market activity shows strong demand, with April auctions overshooting targets and recording combined allotments of over ₦1.6 trillion, highlighting sustained investor appetite.
Market watchers say attention will focus on subscription levels, stop rates, and yield movements—especially for the 364-day tenor—as indicators of investor confidence and near-term interest rate expectations.
