CBN raised N8.14 trillion in T-Bills auctions, 40.34% above N5.8 trillion Q3 target

The Central Bank of Nigeria (CBN) allotted approximately N8.14 trillion across eight Nigerian Treasury Bills (NTB) auctions between July and September 2026, about 40.34% more than the N5.8 trillion targeted for the third quarter (Q3).

A Nairametrics review of primary market auction results for the three-month period shows that the CBN significantly overshot its advertised offers across most sessions, driven largely by overwhelming demand for the 364-day bill.

After months of elevated rates in July and August, the apex bank eventually crashed stop rates across the three standard tenors in September, lowering the 364-day borrowing cost from a Q3 peak of 17.70% on July 8 to 15.89% by September 23.

364-Day Bills drive Q3 allotments

Across the eight confirmed auctions reviewed, offer sizes ranged from N600 billion to N750 billion per session, while allotments ranged from N497.59 billion to N1.456 trillion.

• The pattern showed two distinct phases: heavy overshooting through July and August, followed by a sharp normalisation in late September as interest rates declined.
• On July 8 and 15, the CBN allotted N1.06 trillion and N1.191 trillion, respectively, against offers of N700 billion and N600 billion, while the 364-day stop rate moved from 17.70% to 17.66%.
• The July 29 and August 12 auctions produced allotments of N1.25 trillion and N1.456 trillion, respectively, with the latter representing the largest single-auction overshoot of the quarter as the one-year rate rose to 17.59%.
• On August 26 and September 2, allotments moderated to N762.88 billion and N865.71 billion, while the 364-day rate declined to 17.15% and 16.84%, respectively.
• The CBN subsequently allotted N1.054 trillion on September 9 before pulling allotment down to N497.59 billion on September 23, when the one-year rate crashed to 15.89% following the 350-basis-point MPR cut the previous day.

The September 23 auction was the first reviewed session in the quarter in which the amount allotted was lower than the amount offered.

CBN exceeds DMO Q3 target

The Debt Management Office (DMO), working with the CBN, had outlined an expanded Q3 2026 NTB Issuance Programme targeting N5.8 trillion in gross issuance between July and September.

• The programme comprised N900 billion in 91-day bills, N900 billion in 182-day bills and N4 trillion in 364-day bills, with the one-year instrument accounting for roughly 69% of planned issuance.
• The N8.137 trillion allotted across the eight reviewed auctions exceeded the N5.8 trillion quarterly target by more than N2.3 trillion, even without the September 16 auction, whose exact figures could not be independently confirmed.
• The DMO projected N2.644 trillion in Treasury Bills maturities during the quarter, implying an estimated net new borrowing target of about N3.16 trillion after repayments.
• On August 12, the 364-day rate rose to 17.59% despite N4.4 trillion in bids against a N700 billion offer, as the banking system had received a N5.21 trillion net liquidity injection earlier that week.
• By September 23, the CBN allotted less than the amount offered, coinciding with the broader shift toward monetary easing following the Monetary Policy Committee’s 350-basis-point rate cut.

The swings in allotments and rates during the quarter reflected the CBN’s use of Treasury Bills to meet government financing requirements while also managing liquidity in the financial system.

364-Day Bills dominate Q3 auctions

The 364-day bill remained the dominant instrument across the eight auctions, while its stop rate declined substantially toward the end of the quarter.

Its stop rate fell from a Q3 peak of 17.70% on July 8 to 15.89% by September 23, representing a cumulative decline of 181 basis points, with 146 basis points of that decline occurring during the final four auctions.

• Across the eight auctions, the 91-day bill attracted N722.39 billion in allotments against N850 billion offered, while the 182-day bill recorded N333.39 billion against N800 billion offered.
• The 364-day bill recorded N7.086 trillion in allotments against N3.8 trillion offered, exceeding the amount offered by N3.286 trillion, or 86.47%.
• Combined, the three tenors produced about N8.142 trillion in allotments against N5.45 trillion offered across the eight reviewed auctions.
• The 364-day instrument alone accounted for about 87% of the total amount allotted, highlighting the concentration of activity at the long end of the NTB market.

With the DMO’s N5.8 trillion Q3 issuance target already exceeded, attention now shifts to how the CBN calibrates its Q4 2026 NTB issuance programme in a materially lower interest-rate environment.