The Central Bank of Nigeria (CBN) has announced plans to raise N750 billion through a Treasury Bills auction scheduled for April 22, 2026, the second in April and in line with the Debt Management Office’s (DMO) borrowing plan.
The planned auction was disclosed in an official tender notice issued by the apex bank to traders and seen by Nairametrics.
The move is part of the Federal Government’s N3.95 trillion Treasury Bills issuance strategy for the second quarter (Q2), 2026, as it continues to rely on short-term debt instruments to manage liquidity and meet fiscal obligations.
What the data is saying:
The CBN’s tender notice shows that N750 billion will be offered across three maturities using the Dutch auction system. The auction will take place on April 22, with results expected the same day.
- N100 billion will be offered in 91-day Treasury Bills.
- N100 billion will be offered in 182-day Treasury Bills.
- N550 billion will be offered in 364-day Treasury Bills.
- Bids must be submitted electronically via the Scripless Securities Settlement System (S4) between 8:00 a.m. and 11:00 a.m., with a minimum subscription of N50,001,000.
Successful bidders will receive allotment letters on April 23, with payments due by 11:00 a.m. on the settlement date, while the CBN retains the right to adjust the total offer based on market conditions.
More insights:
The April auction aligns with the Federal Government’s second-quarter borrowing plan, which targets significant fundraising from the domestic debt market. This underscores the continued importance of Treasury Bills in financing short-term obligations.
- Investor appetite for government securities remains strong, particularly for longer-tenor instruments.
- The 364-day Treasury Bill is expected to attract the highest demand due to relatively attractive yields.
- Liquidity levels in the financial system continue to support robust participation in auctions.
- Rising interest rate expectations are encouraging investors to lock in higher returns.
Analysts note that demand patterns in this auction could provide further signals about yield direction and investor sentiment in the near term.
What you should know:
Nigeria’s Treasury Bills market plays a central role in short-term funding and liquidity management for the government. The structure and execution of these auctions are critical to maintaining stability in the financial system.
- The government plans to raise about N3.95 trillion from Treasury Bills in Q2 2026, with a net issuance target of N750 billion after maturities.
- Previous auctions have recorded strong demand, largely driven by institutional investors seeking safe, high-yield assets.
- The Dutch auction system allows yields to be determined by market demand rather than fixed rates.
- The S4 platform digitizes the process, improving efficiency, transparency, and reducing risks.
Market watchers will be keen to see whether yields continue to rise, particularly for longer-tenor instruments, as monetary conditions and investor expectations evolve.
