CBN ALLOCATES N8.14TN THROUGH T-BILLS, SURPASSES Q3 TARGET

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By: Muftau Fatimo

The Central Bank of Nigeria (CBN) raised N8.14tn through Treasury bills issuances in the third quarter of 2026, exceeding the N5.8tn target set by the Debt Management Office (DMO) by N2.34tn.

A review of eight Nigerian Treasury Bills auctions conducted between July and September showed that total allotments surpassed the planned issuance for the quarter by 40.34 per cent, reflecting strong investor demand for government securities.

The 364-day Treasury bill accounted for the largest portion of the funds raised, attracting N7.09tn, which represented about 87 per cent of total allotments during the period.

The heavy concentration in the one-year instrument came amid relatively high yields recorded in July and August, which helped sustain investor appetite for government securities.

However, yields began to decline in September following a shift in monetary policy, with the CBN lowering stop rates across the three tenors.

The stop rate on the 364-day bill fell to 15.89 per cent at the 23 September auction, down from a quarterly peak of 17.70 percent recorded on 8 July.

A review of eight Nigerian Treasury Bills (NTBs) auctions conducted between July and September shows that total allotments were 40.34 per cent above the planned issuance for the quarter.

This represents a decline of 181 basis points, reflecting the change in borrowing costs in the primary Treasury bills market over the quarter.