The Central Bank of Nigeria allotted a total of N731.75bn at its Treasury Bills Primary Market Auction held on Wednesday, May 6, 2026, amid strong investor demand for longer-dated government securities.
Auction results showed that total subscriptions rose to N2.41tn, significantly higher than the N700bn initially offered across the 91-day, 182-day, and 364-day tenors.
The apex bank increased allotments above the original offer size, especially on the 364-day Treasury bill, reflecting sustained liquidity in the financial system and continued investor appetite for high-yield instruments.
The 364-day bill attracted the highest demand, receiving subscriptions worth N2.23tn against an offer of N550bn. The CBN eventually allotted N600.49bn on the one-year paper.
The 182-day Treasury bill recorded subscriptions of N105.33bn compared to the N50bn offered, with allotments standing at N67.68bn.
Demand for the 91-day instrument remained relatively weak, attracting subscriptions of N71.23bn against the N100bn offered. The apex bank allotted N63.58bn for the short-term bill.
The auction results highlight investors’ growing preference for long-dated risk-free assets as they seek to secure elevated yields amid lingering macroeconomic uncertainty.
Stop rates declined slightly across all maturities, indicating strong liquidity conditions despite the heavy oversubscription recorded during the auction.
The stop rate for the 91-day bill eased marginally to 15.949 per cent from 15.95 per cent recorded at the previous auction.
The 182-day bill declined to 16.14 per cent from 16.19 per cent, while the 364-day bill dropped to 16.15 per cent from 16.20 per cent.
Despite the moderation in stop rates, true yields remained attractive to institutional investors.
The 91-day bill delivered a true yield of approximately 16.62 per cent, while the 182-day and 364-day bills offered estimated true yields of 17.57 per cent and 19.26 per cent respectively.
Analysts said the weaker demand for the 91-day instrument further reflects market preference for longer-duration assets, as investors remain cautious about reinvesting at the short end of the yield curve.
The latest auction follows a series of aggressive Treasury bills issuances by the CBN in April 2026.
During the month, the apex bank conducted two major auctions valued at N700bn and N750bn respectively.
However, total allotments for April rose to about N1.63tn, exceeding the combined offer size of N1.45tn due to strong investor participation and elevated system liquidity.
At the April 22 auction alone, the CBN allotted N894.17bn after subscriptions surged to N2.36tn, with most of the demand concentrated on the 364-day instrument.
Analysts believe the sustained preference for long-term Treasury bills signals expectations that yields could gradually moderate in the coming months as liquidity conditions improve.
