DMO offers N800 billion in T-bills on Wednesday as N148.6 billion matures for settlement

The Debt Management Office (DMO) will offer N800 billion in Nigerian Treasury Bills at its November 11, 2026 auction, against N148.565 billion in maturing securities, creating a potential net funding requirement of approximately N651.44 billion.

According to the Central Bank of Nigeria’s (CBN) invitation to tender, issued on behalf of the DMO, the securities will be offered through a Dutch auction, with settlement scheduled for Thursday, November 12.

The offer comes amid elevated banking-system liquidity and follows recent auctions at which the DMO accepted substantially less than investors bid, while maintaining relatively low stop rates.

Treasury Bills offer exceeds maturities:

The DMO’s N800 billion offer is approximately 5.4 times the N148.565 billion in Treasury Bills scheduled to mature on November 12.

A full allotment would therefore result in approximately N651.44 billion in additional gross issuance beyond the amount needed to refinance maturing bills.

• The 91-day Treasury Bill carries an offer of N100 billion, representing 12.5% of the total.
• The 182-day Treasury Bill also carries an offer of N100 billion, accounting for another 12.5%.
• The 364-day Treasury Bill accounts for N600 billion, or 75% of the total amount offered.
• The N148.565 billion in maturing securities consists of 91-day Treasury Bills due for settlement on November 12.
• The distribution places the largest share of the offer in the 364-day tenor, which has attracted substantial investor demand at recent auctions.
• However, the advertised offer does not necessarily represent the amount the DMO will ultimately raise.
• At the November 4 auction, the DMO allotted N509.401 billion against an N800 billion offer despite receiving N2.045 trillion in subscriptions.

That represented approximately 24.9% of total bids, with about 75.1% of investor subscriptions left unallotted.

The November 11 auction will therefore test whether the DMO maintains its selective allotment approach or increases issuance to meet its advertised funding target.

DMO maintains selective auction allotments:

Recent Treasury Bills auctions have shown the DMO’s willingness to limit allotments despite substantial investor demand.

At the October 28 auction, the DMO allotted just N71.16 billion and rejected approximately N1.84 trillion in bids, while stop rates declined across the three tenors.

• The 91-day stop rate fell to 15.40%, while the 182-day rate declined to 15.79%.
• The 364-day Treasury Bill cleared at 15.80%, a level maintained at the November 4 auction.
• On October 7, the DMO allotted N968.47 billion against a N900 billion offer, with the 364-day stop rate at 15.85%.

Nairametrics previously reported that the October 28 auction demonstrated the DMO’s preference for limiting allotments rather than accepting higher borrowing rates.

The November 4 auction reinforced that pattern, with subscriptions reaching 2.56 times the offer while stop rates remained unchanged.

The upcoming auction will provide another indication of how the DMO balances its funding requirements against borrowing costs.

Banking liquidity supports Treasury demand:

The November 11 auction comes amid substantial liquidity in Nigeria’s banking system, which could support demand for government securities.

According to the Financial Markets Dealers Association’s weekly report, banking-system liquidity increased by 15.36% week-on-week to N8.505 trillion, while banks held N5.915 trillion at the CBN’s Standing Deposit Facility on November 9.

• Estimated liquidity inflows for the week stand at N2.448 trillion, with Open Market Operations maturities accounting for approximately 93.9%.
• The CBN allotted approximately N5.667 trillion through OMO auctions held on November 3 and November 6.
• OMO instruments have recently cleared at rates above the stop rates recorded at Treasury Bills auctions, creating a pricing difference between the two markets.
• For the DMO, the November 11 auction presents a choice between raising more funds and maintaining borrowing costs near recent levels.

The 364-day bill will remain a key focus because it accounts for three-quarters of the advertised offer.

The actual net funding outcome will depend on the amount allotted at the auction, relative to the N148.565 billion in maturing securities.