The Central Bank of Nigeria (CBN) has allotted a total of N829.32 billion across the three tenors offered at its Treasury Bills Primary Market Auction conducted on Tuesday, May 20, 2026, with the one-year instrument attracting the highest investor demand.
Auction results released on Wednesday showed that total subscriptions rose sharply to about N1.99 trillion, significantly exceeding the N650 billion offered across the 91-day, 182-day, and 364-day Treasury bills.
The 364-day bill dominated investor interest, recording subscriptions of N1.84 trillion against an offer size of N500 billion. The CBN eventually allotted N683.29 billion on the tenor, reflecting an oversubscription ratio of about 3.7 times.
The 182-day bill also witnessed strong demand, attracting N81.04 billion in subscriptions compared to the N50 billion offered. The apex bank allotted N78.59 billion for the tenor.
In contrast, the 91-day bill recorded weaker demand, with subscriptions totaling N68.63 billion against an offer of N100 billion. The CBN allotted N67.45 billion, making it the only tenor that failed to attract subscriptions above its offer size.
The auction outcome highlights sustained investor preference for longer-dated risk-free instruments as market participants continue seeking to lock in elevated yields amid uncertainty in the broader macroeconomic environment.
Stop rates remained largely unchanged across all tenors, indicating strong market liquidity and the CBN’s resistance to raising rates despite heavy oversubscription at the long end of the curve.
The stop rate for the 91-day bill edged slightly higher to 15.95% from 15.949% recorded at the previous auction. The 182-day bill remained unchanged at 16.14%, while the 364-day bill eased marginally to 16.149% from 16.15%.
Analysts say the relatively weak demand for the short-dated 91-day bill suggests that investors are increasingly reluctant to reinvest at the short end of the curve, preferring to secure longer-term yields while rates remain attractive.
The latest auction follows the May 6, 2026 Primary Market Auction, where the CBN allotted N731.75 billion after total subscriptions surged to N2.41 trillion against a combined offer of N700 billion.
Demand at the previous auction was also heavily concentrated on the 364-day bill, which alone attracted subscriptions worth N2.23 trillion.
The sustained oversubscription trend reflects continued investor appetite for high-yield government securities and expectations that yields may gradually decline in the coming months.
Market analysts noted that investors are increasingly front-loading exposure to long-dated Treasury bills amid expectations that the current yield environment may not persist for long, especially if macroeconomic conditions improve or monetary policy direction shifts in the near term.
