The Debt Management Office (DMO) has increased its Nigerian Treasury Bills (NTB) issuance programme for the second quarter (Q2) of 2026 by approximately N850 billion, raising the total planned offer amount from N3.95 trillion to N4.8 trillion.
Other News
This is according to an analysis of the original and updated Q2 2026 NTB issuance calendars published by the DMO and reviewed by Nairametrics.
The revised programme leaves total maturing Treasury Bills unchanged at N3.197 trillion but significantly expands planned issuance, only in June having concluded April and May auctions.
The planned issuances for June more than doubled the quarter’s implied net new borrowing, underscoring the Federal Government’s increased reliance on short-term domestic debt financing.
What the data is saying
The updated issuance calendar seen by Nairametrics shows a substantial increase in planned Treasury Bills offerings, with the additional borrowing concentrated entirely in the final month of the quarter.
- The revision lifts net new issuance above maturities from N753.21 billion in the original programme to N1.603 trillion.
- Total planned NTB issuance increased to N4.8 trillion from N3.95 trillion, representing an increase of N850 billion or 21.52%.
- Net new borrowing above maturities rose to N1.603 trillion from N753.21 billion, an increase of N849.79 billion or 112.8%.
- The allocation to 364-day Treasury Bills increased to N3.7 trillion from N2.85 trillion, raising its share of total issuance from 72.2% to 77.1%.
While issuance of 182-day bills increased to N500 billion from N400 billion, the 91-day bill allocation was reduced to N600 billion from N700 billion.
The debt office could not tinker with April and May auction sizes, which had already been concluded, leaving them concentrating the entire upward revision in the June 3 and June 17 auctions, both of which now carry N1 trillion offer sizes.
More insights
The structure of the revised programme suggests a deliberate decision by the government to back-load additional borrowing into the final month of the quarter. This approach could have important implications for market liquidity and yield dynamics during June.
- The June 3 auction was increased from N700 billion to N1 trillion, representing a N300 billion upward revision.
- The June 17 auction recorded the largest adjustment, rising from N450 billion to N1 trillion, an increase of N550 billion.
- Combined planned issuance for the two June auctions now stands at N2 trillion, compared with N1.15 trillion originally scheduled for the entire month.
- The DMO recently demonstrated the market’s ability to absorb larger issuances when it offered N1 trillion at the June 3 auction and received subscriptions amounting to N1.457 trillion.
The growing dominance of the 364-day instrument also reflects a preference for longer-duration short-term borrowing, allowing the government to reduce rollover pressure while remaining within the Treasury Bills market.
What you should know
The revised NTB programme comes at a time when the Central Bank of Nigeria (CBN) has intensified liquidity management through aggressive Open Market Operations (OMO).
- During May 2026 alone, the apex bank reportedly absorbed N3.69 trillion in a single day aggressive OMO auctions.
- Large Treasury Bills auctions and OMO sales collectively drain liquidity from the financial system, even though they are issued by different government institutions.
- The June 17 NTB auction is expected to have a particularly significant liquidity impact, with only N184.79 billion in maturities due against a N1 trillion offer size.
This creates a net liquidity withdrawal of approximately N815.21 billion on the settlement date, making it one of the largest single-day NTB liquidity absorptions in recent periods.
Pension fund administrators, money market funds, insurance firms, and bank treasury desks are expected to position ahead of the auction to meet funding requirements.
The updated calendar, which now shows N4.8 trillion in planned issuance compared with the original N3.95 trillion programme, indicates that the government’s short-term financing needs increased during the quarter.
