The Central Bank of Nigeria (CBN) has announced plans to raise N700 billion through a Nigerian Treasury Bills (NTBs) auction scheduled for May 7, 2026, marking the first issuance for the month and aligning with its second-quarter (Q2) borrowing calendar.
The planned auction was disclosed in an official tender notice issued by the apex bank on behalf of the Debt Management Office (DMO) and obtained by Nairametrics.
The move forms part of the Federal Government’s broader domestic borrowing strategy for Q2 2026, which includes multiple NTB issuances to manage liquidity and fund short-term obligations.
What the data is saying
According to CBN’s tender notice, the sum of N700 billion will be offered across three maturities using the Dutch auction system.
- N100 billion will be offered in 91-day Treasury Bills.
- N50 billion will be offered in 182-day Treasury Bills.
- N550 billion will be offered in 364-day Treasury Bills.
- Dealers are told to submit their bids electronically via the Scripless Securities Settlement System (S4) between 8:00 a.m. and 11:00 a.m. on May 6, with a minimum subscription of N50,001,000.
- Allotment letters will be dispatched to successful bidders on May 7, with payments due by 11:00 a.m. on the settlement date.
However, the CBN said it retains the discretion to adjust the total amount on offer based on prevailing market conditions.
More insights
The May auction is the first of two scheduled NTB issuances for the month, following the CBN’s Q2 calendar which outlined planned offerings of N700 billion and N650 billion on May 6 and May 20, respectively.
- The 364-day Treasury Bill is likely to attract the highest demand due to relatively higher yields.
- System liquidity conditions continue to support active participation from institutional investors particularly pension funds managers and financial institutions.
- Market participants are increasingly positioning for higher yields amid evolving monetary conditions.
Analysts note that the outcome of this auction will provide key signals on yield direction and investor sentiment as the second quarter progresses.
What you should know
Nigeria’s Treasury Bills market remains a key tool for short-term government financing and liquidity management.
- The Q2 2026 NTB calendar includes multiple issuances targeting N3.95 trillion to meet government funding needs.
- DMO has projected net issuance amounts to N750 billion by the end of June.
- However, in April alone, the CBN overshot the N1.45 trillion target allotting N731,377,502,000 and N894,363,855,000 from two issuances of N700 billion and N750 billion on April 8 and 22 respectively.
- Total allotments from the two auctions in April amounted to N1,625,741,357,000.
Market watchers will be focused on subscription and allotment levels as well as stop rates, particularly for the 364-day instrument. These are partly the indicators of investor confidence and interest rate expectations in the near term, as well as the government exposure level.
