Nigeria’s Treasury Bills (NTB) market recorded a surge in investor demand at its latest auction, with total subscriptions hitting N4.59 trillion, nearly three times the N1.15 trillion offered by the Debt Management Office (DMO).
This development was revealed at the primary market auction conducted on Wednesday, February 4, 2026.
Despite the massive inflows, the DMO moderated borrowing by allotting N952.60 billion across three tenors of 91-day, 182-day, and 364-day bills.
Investors demonstrated a strong preference for longer-dated instruments, particularly the 364-day bill, highlighting confidence in government securities as a safe and relatively high-yielding investment amid persistent liquidity in the market.
What the data is saying:
Demand at the auction was heavily skewed toward the 364-day tenor, which attracted subscriptions of N4.40 trillion against an offer of N800 billion. The DMO allotted N808.78 billion, taking advantage of the strong demand to lower borrowing costs.
364-day Treasury bill:
- Offer: N800.0 billion
- Subscription: N4.40 trillion
- Allotment: N808.78 billion
- Stop rate: 16.99%, down 137bps from January’s 18.36%.
182-day Treasury bill:
- Offer: N200.0 billion
- Subscription: N123.41 billion
- Allotment: N80.61 billion
- Stop rate: 16.65%, unchanged.
91-day Treasury bill:
- Offer: N150 billion
- Subscription: N66.05 billion
- Allotment: N63.21 billion
- Stop rate: 15.84%, unchanged.
The auction data highlights a strong demand for longer-term NTBs, giving the DMO room to reduce the stop rate on the one-year paper while maintaining stability on shorter tenors.
More insights:
While the 364-day bill saw unprecedented oversubscription, the 91-day and 182-day tenors struggled to attract bids equivalent to their offers. This contrast suggests a market increasingly focused on locking in returns over a longer period.
- The 91-day bill received N66.05 billion in bids against a N150 billion offer.
- The 182-day bill attracted N123.41 billion against a N200 billion offer.
- Stop rates on both the 91-day and 182-day bills remained unchanged at 15.84% and 16.65%, respectively.
Analysts note that the sharp decline in the 364-day stop rate reflects the DMO’s pricing power and the market’s confidence in long-term government securities.
What this means:
The near 299% oversubscription underscores persistent liquidity chasing risk-free assets, as investors continue to prefer NTBs over equities and other riskier instruments.
The DMO’s cautious approach in under-allotting relative to total subscriptions and reducing the one-year yield suggests growing market depth and strong investor appetite for longer-dated bills, even amid elevated borrowing needs.
What you should know:
The 364-day NTB stop rate fell sharply by 137 basis points to 16.99%, compared with 18.36% at the January 2026 auction.
This reflects strong investor demand for longer-dated bills and gives the DMO room to cut borrowing costs.
- In contrast, stop rates on the 91-day (15.84%) and 182-day (16.65%) tenors remained unchanged, mirroring the January 2026 auction.
- The sharp decline in the one-year yield aligns with trends observed in January 2026, when oversubscription, particularly on the 364-day paper, enabled the DMO to reduce rates despite tight liquidity and elevated benchmark interest rates.
This marks a clear shift from the rate-hiking environment of January 2026 to a more issuer-friendly outcome, benefiting both government finances and investors seeking longer-term, stable returns.
