CBN to sell N700 billion Treasury Bills today in second August auction

The Central Bank of Nigeria (CBN), on behalf of the Debt Management Office (DMO), will offer N700 billion across the 91-day, 182-day and 364-day Treasury Bills tenors in the second and final Treasury Bills (NTB) auction for August 2026.

The notice of an Invitation to Tender for Nigerian Treasury Bills (NTB) obtained by Nairametrics stated that All Money Market Dealers are required to submit bids through the CBN S4 Web Interface between 8:00 a.m. and 11:00 a.m. on Wednesday, August 26, 2026.

The offer is broken down as N100 billion for the 91-day bill, N100 billion for the 182-day bill, and N500 billion for the 364-day bill, and will be conducted through the Dutch auction, maintaining the CBN’s now-familiar preference for longer-dated paper that has defined its Treasury Bills strategy through much of Q3 2026.

What the data is saying:

Authorised Money Market Dealers are permitted to submit multiple bids for their own accounts, non-Money Market Dealers or interested members of the public. The auction is structured as follows:

• 91-day bill: N100 billion on offer
• 182-day bill: N100 billion on offer
• 364-day bill: N500 billion on offer
• Total offer: N700 billion

Each bid must be in multiples of N1,000, subject to a minimum of N50,001,000, with dealers permitted to submit multiple bids on their own account or on behalf of non-Money Market Dealers and members of the public.

The auction result is expected to be announced on Wednesday, August 26, 2026, while allotment letters will be issued on Thursday, August 27, 2026.

Payment for successful bids is due to the CBN not later than 11:00 a.m. on the same day. The apex bank reserves the right to reject any bid or vary the amount on offer in line with prevailing market conditions.

Get up to speed

This is the second scheduled Treasury Bills auction of August 2026, following a month that has already seen one cancellation and one unusually eventful sale.

• The CBN had initially planned its first August auction for Thursday, August 6, offering N700 billion across the same three tenors, with bids due August 5.
• However, that auction was abruptly withdrawn just days after the apex bank absorbed a combined N4.69 trillion from the banking system through back-to-back OMO auctions on August 3 and 4, prompting concerns that a fresh N700 billion Treasury Bills sale so soon after could over-tighten system liquidity.
• The CBN returned to the primary market on August 12, offering N700 billion once again.

That auction drew N4.4 trillion in total subscriptions, well above the offer size, with the 364-day bill alone attracting N4.19 trillion in bids against its N500 billion offer, more than eight times oversubscribed.

Rather than ease the one-year stop rate as it had at the previous two auctions, the CBN raised it by 24 basis points to 17.59% from 17.35%, allotting N1.26 trillion on that tenor alone.

The 91-day and 182-day bills held steady at 16.30% and 16.50% respectively, with N148.57 billion and N47.48 billion allotted.

Combined, the August 12 auction saw the CBN allot approximately N1.456 trillion against its N700 billion offer, meaning that with the August 5/6 auction cancelled outright, August 12 stands as the only completed NTB auction of the month prior to today’s sale.

What you should know:

The August 12 rate hike marked a notable reversal from the trend seen through much of July, when the CBN eased the 364-day stop rate at both the July 15 and July 29 auctions despite similarly overwhelming demand, dropping it to as low as 17.35% by month-end.

• The rate hike came even as the banking system was flush with liquidity, following Nairametrics report of N2.48 trillion OMO repayment on August 11 alone, part of a broader N5.21 trillion net injection into the system between August 4 and 11.
• Today’s auction forms part of the CBN’s Q3 2026 NTB Issuance Programme, which targets N5.8 trillion in gross issuance between July and September, with August 12, August 26, and September 2 flagged among the six largest-sized auction sessions in the calendar, with each offering N700 billion.
• Market participants will be watching closely to see whether the 364-day stop rate resumes its earlier downward trend or continues the hawkish stance signalled at the August 12 auction.

Analysts expect the CBN to begin cutting rates at its September Monetary Policy Committee meeting.

Today’s N700 billion offer, once allotted, may bring the final cumulative figure for August considerably higher than N2 trillion, going by recent trends of the CBN allotting well beyond advertised offer sizes, particularly on the 364-day tenor.