Nigeria’s Treasury Bills auction for October 22, 2025, recorded a strong N100.91 billion oversubscription, as investors rushed to secure higher yields across all maturities.
The total bids reached N750.91 billion, surpassing the N650 billion offered by the Central Bank of Nigeria (CBN), reflecting robust investor appetite for government securities despite liquidity tightening in the financial system.
However, the government allotted only N391.58 billion, reflecting the desire to scale down on debt obligations.
It should be noted that the T-bills were reissued by the CBN on behalf of the Debt Management Office (DMO). Data from the DMO showed that stop rates rose across all tenors.
The 91-day, 182-day, and 364-day papers cleared at 15.30%, 15.50%, and 16.14%, respectively—up from 15.00%, 15.25%, and 15.77% at the previous auction.
True yields were even higher at 15.92%, 16.81%, and 19.25%, reinforcing investor preference for longer-term bills that offer premium returns in an inflationary environment.
Market analysts said the uptick in rates reflects both strong subscription levels and the CBN’s attempt to balance inflation control with market demand for attractive yields.
One-year bill dominates as investors lock in higher returns
The breakdown of the auction results shows that investor interest was particularly strong in the 364-day paper, which drew the bulk of total subscriptions. The one-year bill attracted an impressive N674.25 billion in bids—nearly ten times higher than the 91-day and 182-day offerings combined—out of which N316.56 billion was allotted.
For the shorter maturities, the 91-day bill received bids worth N8.13 billion, with N7.61 billion allotted, while the 182-day paper attracted N68.53 billion in subscriptions, resulting in N67.42 billion allotment.
The range of bid rates also highlighted investors’ competitive positioning, with spreads between 14.9%–16.5% for the 91-day, 14.5%–17.03% for the 182-day, and up to 20.0% for the 364-day paper.
Analysts’ perspective
Analysts note that the heavy demand for longer tenors reflects investors’ efforts to lock in yields before a potential moderation in rates.
“With the 364-day yield at over 19% on a true return basis, investors should consider locking into the longer-tenored bills before the rates start trending down,” Dr. Ayodeji Ebo, the Managing Director and Chief Business Officer of Optimus by Afrinvest, advised
The investment strategist noted that investors have continued to lock in higher returns amid tight liquidity. He further advised that investors should lock into longer-tenored instruments now to secure current yields before rates fall further.
“Once liquidity improves and monetary pressures ease, the CBN is likely to adjust stop rates downward,” another dealer noted, adding that “For now, Treasury Bills remain one of the most attractive low-risk instruments for institutional and retail investors seeking stable returns in Nigeria’s evolving monetary environment.”
Key highlights of auction figures (22-Oct-25):
91-DayTB:
- Stop Rate 15.30%
- True Yield: 15.92%
- Subscription: N8.13 billion
- N7.61 billion allotted
182-Day:
- Stop Rate 15.50%,
- True Yield: 16.81%,
- Subscription: N68.53 billion
- N67.42 billion allotted
364-Day:
- Stop Rate 16.14%,
- True Yield 19.25%,
- Subscription N674.25 billion
- N316.56 billion was allotted
Overall:
- Total Offer: N650 billion
- Total Subscription: N750.91 billion
- Total Allotment: N391.59 billion
