The Central Bank of Nigeria (CBN) plans to auction N3.95 trillion in Treasury Bills (NTBs) in the second quarter of 2026, beginning from April 8.
The projected net issuance amounts to N750 billion after settling N3.2 trillion in maturing bills by the end of June.
This is according to the CBN’s NTB issuance calendar obtained by Nairametrics on Thursday, April 2, 2026.
The programme highlights a strong preference for longer-dated instruments, reflecting prevailing investor demand and the apex bank’s liquidity management strategy.
What the data is saying
A breakdown of the programme shows a strong bias toward longer-dated instruments, with N2.85 trillion—representing the bulk of the issuance—allocated to 364-day Treasury Bills.
- In comparison, the CBN plans to issue N700 billion in 91-day bills and N400 billion in 182-day bills, reflecting relatively lower emphasis on short- and medium-term tenors.
- The issuances are expected to be conducted in six sessions over three months, with the first two sessions of N700 billion and N750 billion on April 8 and 22 respectively.
- The calendar scheduled another two auctions of N700 billion and N650 billion on May 6 and 20 respectively.
- The final auctions of the quarter are scheduled to hold on June 3 and 17 where the sums of N700 billion and N450 billion will be auctioned respectively.
The skew toward longer maturities aligns with investor’s preference for locking in higher yields in a high-interest-rate environment.
More insights
During the same period, CBN scheduled for settlement a total of N3.2 trillion maturities spread across the three months with June having clustered maturities all through the four weeks of the month.
- Maturing bills of N356.47 billion and N758.31 billion are expected for settlement on April 8 and 22 respectively.
- On May 6 and 20, maturing bills amounting to N556.02 billion and N634.5 billion respectively will be settled.
- June 3 will see maturities of N464.59 billion.
- June 10: N144.4 billion will mature.
- June 17: N184.8 billion will be settled.
- June 24: N97.75 billion will mature.
Analysts note that the dominance of 364-day instruments allows the CBN to extend maturities, reduce refinancing frequency, and stabilise short-term rates while maintaining tight liquidity conditions.
Expert views
Analysts say the programme reflects a deliberate liquidity tightening stance by the apex bank, with implications for both fixed income and equity markets. They also highlight the potential for portfolio shifts as investors respond to elevated yields.
- “The heavy tilt toward 364-day bills reflects investor appetite for yield certainty. The scale and structure of the Q2 NTB programme signal a deliberate liquidity tightening stance by the CBN,” said Mr. Charles Fakrogha, CEO of ECL Asset Management Ltd.
- “Elevated yields on 364-day bills, if sustained in Q2, may provide a compelling risk-free alternative that could trigger portfolio rebalancing away from equities, particularly among institutional investors seeking capital preservation,” Fakrogha added.
- Chief Blakey Ijezie stated, “With gross issuance at N3.95 trillion, yields will likely remain elevated to sustain strong institutional demand. We may see reduced liquidity and softer valuations in equities as funds rotate into fixed income.”
- “However, fundamentally strong, dividend-paying stocks may remain resilient, as investors become more selective rather than exiting the market entirely. The NTB programme is likely to exert downward pressure on the equities market in the near term,” the founder of Okwudili Ijezie & Co. (Chartered Accountants) concluded.
Both analysts added that the move signals continued liquidity tightening, especially amid persistent excess liquidity and anticipated election-related spending ahead of 2027.
What you should know
The CBN uses Treasury Bills as a primary open market operations tool to regulate liquidity in the banking system. By issuing NTBs, the apex bank absorbs excess cash from banks and investors, tightening money supply and controlling inflationary pressures.
- When NTB issuance exceeds maturities, liquidity is withdrawn from the system, as seen in the projected net issuance of N750 billion.
- Conversely, when maturities exceed issuance, liquidity is injected into the financial system.
- The preference for longer-tenor bills helps lock in funds for extended periods, reducing rollover risks.
- This strategy also supports yield stability while reinforcing the CBN’s price stability mandate.
Overall, the Q2 NTB programme underscores the CBN’s focus on tightening liquidity conditions while balancing investor demand and macroeconomic stability objectives.
