Nigeria’s Debt Management Office (DMO) raised a total of N1.144 trillion at its first Nigerian Treasury Bills (NTB) primary market auction of 2026, at higher stop rates across all maturities amid sustained investor demand.
At the January 7 auction, DMO raised N108.17 billion for the 91-day, N48.23 billion for the 182-day, and N987.78 billion for the 364-day maturities.
The auction results showed a clear upward repricing of the risk-free assets across all maturities, particularly at the long end of the curve as investors continued to favour government securities as a hedge against inflation and policy uncertainty.
Despite higher rates, demand remained resilient, highlighting strong system liquidity and investors’ willingness to lock in elevated yields. The one-year paper once again dominated the auction, accounting for the bulk of funds raised.
Highlight of January 7, 2026, NTB Auctions details
- Total offered: N1.15 trillion
- Total allotted: Approximately N1.14 trillion
By tenor: 91-day bill
- Offer: N150 billion
- Subscription: N112.26 billion
- Allotment: N108.17 billion
- Stop rate: 15.80% (up 30bps)
182-day bill
- Offer: N200.0 billion
- Subscription: N49.91 billion
- Allotment: N48.23 billion
- Stop rate: 16.50% (up 55bps)
364-day bill
- Offer: N800.0 billion
- Subscription: N1.38 trillion
- Allotment: N987.78 billion
- Stop rate: 18.47% (up 96bps)
Longer tenor dominates subscriptions
The 364-day NTB emerged as the centrepiece of the auction, with the DMO raising N987.78 billion from the tenor alone. Investors made a total subscription of about N1.38 trillion against an offer size of N800 billion, reflecting robust demand even as the stop rate climbed sharply.
The stop rate on the one-year bill rose to 18.47%, representing the largest increase across the curve. Market participants attributed the strong appetite to investors’ preference for longer-dated instruments that offer better yield compensation and protection against reinvestment risk in a high-rate environment.
Mixed outcome at the short end
At the short end of the curve, the 91-day NTB attracted moderate interest, with the DMO raising N108.17 billion. The stop rate on the three-month paper increased to 15.80%, up from the previous auction, signaling a gradual repricing even for short-dated instruments.
The demand for the 182-day bill was comparatively weaker. The DMO raised N48.23 billion from the six-month tenor, with a stop rate of 16.50%.
While rates rose, subdued subscriptions suggest that investors are increasingly selective at the mid-point of the curve, favouring either liquidity at the short end or yield at the long end.
What you need to know
NTBs are a short-term negotiable instrument or security issued by CBN on behalf of the Federal Government, which the CBN uses to manage the money supply in the economy. The CBN sells them to banks, investors, and institutions.
When the CBN sells NTBs, it collects cash from the system, reducing excess money that could fuel inflation or weaken the naira. When NTBs mature, the government pays investors back with interest, returning money to the economy.
By adjusting how often it sells NTBs and the interest rates offered, the CBN helps control inflation, manage liquidity, and stabilise the financial system.
Implications for the fixed-income market
Overall, the N1.144 trillion raised at the auction underscores the DMO’s continued reliance on the domestic market to meet Federal Government’s funding needs, while also highlighting the depth of investor demand for government securities.
The broad-based increase in stop rates suggests that tight monetary conditions will persist in the near term.
For investors, the auction reinforces the attractiveness of longer-dated NTBs in locking in higher returns, while shorter tenors continue to serve mainly as liquidity management tools rather than yield drivers in the current market environment.
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