The Central Bank of Nigeria (CBN), on behalf of the Debt Management Office (DMO), will offer N700 billion worth of Nigerian Treasury Bills (NTBs) in the second and final scheduled Treasury Bills auction for August 2026.
According to an Invitation to Tender obtained by Nairametrics, authorised Money Market Dealers are required to submit bids through the CBN S4 Web Interface between 8:00 a.m. and 11:00 a.m. on Wednesday, August 26, 2026.
The auction will be conducted through the Dutch auction system and will cover the 91-day, 182-day and 364-day Treasury Bills.
The N700 billion offer is divided into N100 billion for the 91-day bill, N100 billion for the 182-day bill and N500 billion for the 364-day bill.
Each bid must be submitted in multiples of N1,000, with a minimum bid of N50,001,000. Dealers may submit multiple bids for their own accounts, non-Money Market Dealers and interested members of the public.
The auction results are expected to be announced on Wednesday, August 26, while allotment letters are scheduled to be issued on Thursday, August 27. Successful bidders are required to make payment to the CBN no later than 11:00 a.m. on the payment date.
The apex bank also retains the right to reject any bid or vary the amount offered depending on prevailing market conditions.
The latest auction comes after a turbulent start to August for the NTB market. The CBN had initially scheduled a N700 billion auction for August 6, but the sale was withdrawn after the apex bank absorbed a combined N4.69 trillion from the banking system through back-to-back Open Market Operations (OMO) auctions on August 3 and 4.
The CBN subsequently returned to the primary market on August 12 with another N700 billion NTB offer. That auction attracted N4.4 trillion in total subscriptions, with the 364-day bill accounting for N4.19 trillion of the bids against the N500 billion on offer.
Despite the heavy demand, the CBN raised the stop rate on the 364-day bill by 24 basis points to 17.59%, from 17.35% at the previous auction. The 91-day and 182-day bills maintained stop rates of 16.30% and 16.50%, respectively.
The CBN allotted approximately N1.456 trillion at the August 12 auction, significantly above the advertised N700 billion offer. The 364-day tenor alone received an allotment of N1.26 trillion.
The increase in the one-year stop rate represented a reversal of the easing trend recorded through much of July, when the CBN reduced the 364-day stop rate at both the July 15 and July 29 auctions, eventually bringing it down to 17.35%.
The latest auction is part of the CBN’s Q3 2026 NTB Issuance Programme, which targets N5.8 trillion in gross Treasury Bills issuance between July and September. The August 26 auction is one of the major N700 billion auction sessions scheduled under the programme.
Market participants are expected to closely monitor the 364-day stop rate at Wednesday’s auction, particularly after the increase recorded earlier in August. The outcome could provide further insight into the CBN’s current liquidity-management stance.
Analysts expect the CBN to begin cutting interest rates at its September Monetary Policy Committee meeting. However, the extent of demand for the longer-dated Treasury Bills and the rate at which the CBN is willing to allot them will remain key indicators for investors.
If the CBN again allots significantly above the advertised N700 billion, the final cumulative NTB allotment for August could rise well above N2 trillion, following the large allotment recorded at the August 12 auction.
