CBN Allots ₦894bn as ₦2.36trn Demand Signals Shift to Long-Term T-Bills

The Central Bank of Nigeria (CBN) has recorded a surge in investor appetite for government securities, allotting ₦894.17 billion at its Treasury Bills Primary Market Auction held on April 22, 2026, as total subscriptions soared to ₦2.36 trillion.
Nigeria’s fixed-income market witnessed another strong showing midweek as the Central Bank of Nigeria (CBN) leveraged robust investor demand to exceed its initial Treasury bills offer, reinforcing a growing trend of aggressive liquidity mop-up through short-term instruments.
At the auction, the apex bank had initially offered ₦750 billion across the standard maturities—91-day, 182-day, and 364-day bills. However, buoyed by massive oversubscription, the CBN increased total allotments to ₦894.17 billion, with a clear bias toward longer-dated instruments.
The 364-day Treasury bill emerged as the star of the auction, attracting a staggering ₦2.12 trillion in subscriptions—nearly four times the ₦550 billion on offer. The CBN responded by allotting ₦753.45 billion, underscoring investors’ strong preference for locking in yields amid persistent macroeconomic uncertainties.
In contrast, demand for shorter-tenor instruments remained relatively muted. The 182-day bill recorded ₦172.08 billion in subscriptions against an offer of ₦100 billion, with ₦76.24 billion allotted. Meanwhile, the 91-day paper lagged further behind, drawing ₦72.73 billion in subscriptions, below the ₦100 billion offered, with ₦64.48 billion eventually allotted.
Stable Rates Signal Pause in Yield Adjustment
Despite the heavy demand, stop rates across all maturities remained unchanged, suggesting a temporary halt in the upward yield movement seen earlier in April. The 91-day bill closed at 15.95%, while the 182-day and 364-day bills settled at 16.19% and 16.20%, respectively.
Interestingly, these stop rates remained above prevailing secondary market yields, particularly for the 364-day instrument, where the spread reached about 0.35%. This indicates that investors are willing to accept slightly higher rates at the primary market level to secure allocations in a competitive environment.
Market Implications and Investor Strategy
The auction outcome highlights a deepening investor tilt toward longer-tenor securities, as market participants seek to hedge against inflation risks and potential rate volatility. Analysts note that the preference for one-year instruments reflects expectations of sustained tight monetary conditions and a desire to lock in relatively attractive yields.
At the same time, the data points to a cautious stance among investors toward short-term instruments, where returns are perceived as less compelling in the current environment.
CBN’s Expanding Borrowing Strategy
The latest auction also underscores the CBN’s intensified use of Treasury bills as a liquidity management tool. Under its Q2 2026 borrowing plan, the apex bank aims to raise approximately ₦3.95 trillion, with a net issuance target of ₦750 billion.
So far in April alone, the CBN has conducted two auctions, offering a combined ₦1.45 trillion. However, total allotments have already climbed to ₦1.63 trillion, exceeding the planned issuance—an indication of the bank’s responsiveness to market demand and liquidity conditions.
Rising Cost of Domestic Borrowing
While the strong demand reflects confidence in Nigeria’s fixed-income market, it also raises concerns about the sustainability of borrowing costs. The persistence of stop rates above secondary market yields suggests that authorities may be paying a premium to maintain investor interest, potentially increasing the government’s debt servicing burden.
Analysts warn that continued reliance on short-term instruments to fund fiscal obligations could expose the economy to refinancing risks, especially if market conditions tighten further.
Outlook
Going forward, market watchers expect the CBN to maintain a delicate balance between liquidity control and cost efficiency. With investors firmly positioned in longer-dated securities, the direction of yields and inflation will remain key drivers of demand in the coming months.
CBN allots ₦894bn in Treasury bills auction as subscriptions hit ₦2.36trn, with investors favouring 364-day instruments amid stable yields.
The Central Bank of Nigeria raised ₦894bn at its April 2026 Treasury bills auction as investor demand surged to ₦2.36trn, driven by a strong appetite for long-term securities and stable interest rates.