CBN allots N1.05 trillion as 364-day NTB stop rate falls to 16.62%, third straight cut

The Central Bank of Nigeria (CBN) allotted N1.05 trillion at its Wednesday, September 9, 2026, Treasury Bills primary market auction, cutting the stop rate on the one-year bill to 16.62%, its lowest level in recent weeks.

The 16.62% yield marks the third straight cut on the 364-day tenor, suggesting the direction of interest rate movement the apex bank is beginning to pursue after more than three years of elevated interest rates and monetary tightening policy.

The primary market auction results show that investors submitted a combined N2.64 trillion in bids against the N750 billion offered, while the CBN allotted N1.054 trillion, roughly N304.18 billion above the original offer size.

In the invitation for tender, the CBN, in conjunction with the Debt Management Office (DMO) had advertised N500 billion offer. As in previous primary market auctions, demand heavily concentrated on the 364-day bill, while the shorter tenors recorded notably weak interest.

What the data is saying:

Combined, the auction drew total subscriptions of approximately N2.64 trillion against the N750 billion offer, a bid-to-offer ratio of about 3.52 times, with the CBN ultimately allotting N1.054 trillion, roughly N304.18 billion above the original offer size.

• 91-day bill: N150 billion offered, N75.97 billion subscribed, only 50.6% of the offer covered — the only tenor undersubscribed. N70.47 billion allotted. Stop rate held at 16.30%.
• 182-day bill: N100 billion offered, N289.97 billion subscribed, roughly 2.90 times the offer size. N22.44 billion allotted, just 22.44% of the amount offered. Stop rate held at 16.50%.
• 364-day bill: N500 billion offered, N2.537 trillion subscribed, roughly 5.07 times the offer size. N961.28 billion allotted, N461.28 billion above the advertised amount.

Stop rate fell 22 basis points to 16.62% from 16.84% at the September 2 auction.

Maturity dates for the three tenors are December 10, 2026 (91-day), March 11, 2027 (182-day), and September 9, 2027 (364-day).

The scale of demand concentration was stark: the 364-day bill alone accounted for approximately 96% of total subscriptions across all three tenors, drawing far more than the combined N365.94 billion subscribed for the 91-day and 182-day bills together.

A third straight rate cut

Wednesday’s auction extends the easing trend at the long end of the curve seen at the previous two sessions.

• The September 2 auction had already cut the 364-day stop rate by 31 basis points, from 17.15% to 16.84%.
• At the August 26 auction, CBN had earlier cut the 364-day stop rate by 44 basis points, from 17.59% to 17.15%.
• The 91-day and 182-day tenors held their stop rates steady at 16.30% and 16.50% respectively.

With Wednesday’s further 22-basis-point reduction, the one-year NTB stop rate has now fallen a combined 97 basis points across three consecutive auctions, even as demand at each auction remained exceptionally strong.

However, the 364-day bill’s 16.62% yield still represents the most attractive return on the curve relative to the shorter tenors, even with the lower stop rate, which is why investors keep coming with exceptional demand.

What you should know:

Investors have demonstrated sustained preference for locking in yields over a full year even as short-tenor appetite remains conspicuously weak.

• The 91-day bill’s subscription fell 50.6% of the amount offered, marking a notable contrast to the overwhelming demand at the long end.
• The 364-day stop rate is now down 97 basis points over three consecutive auctions beginning since the August 26 NTB auction.

The easing trend adds to the evidence that Nigeria’s fixed income market is entering a rate-easing phase after months of elevated yields.

Wednesday’s auction result suggests a continuing signal of where the broader interest rate environment is heading as the CBN’s Monetary Policy Committee (MPC) meets in the days ahead.