The Central Bank of Nigeria allotted about N8.14 trillion in Nigerian Treasury Bills across eight auctions held between July and September 2026, exceeding the N5.8 trillion gross issuance target set for the third quarter by roughly 40.34%.
A review of primary market auction results for the period shows the apex bank overshot its advertised offers in most sessions, driven mainly by strong demand for the 364-day instrument. Offer sizes ranged from N600 billion to N750 billion per auction, while actual allotments came in between N497.59 billion and N1.456 trillion.
The long-dated bill dominated activity. Across the eight reviewed auctions, the three tenors produced about N8.142 trillion in allotments against N5.45 trillion offered. The 364-day bill accounted for N7.086 trillion of the total against N3.8 trillion offered, representing roughly 87% of the amount allotted. The 91-day bill drew N722.39 billion against N850 billion offered, while the 182-day bill recorded N333.39 billion against N800 billion offered.
Borrowing costs shifted materially during the quarter. The 364-day stop rate peaked at 17.70% on July 8 before easing to 15.89% by September 23, a cumulative decline of 181 basis points. On July 8 and July 15, the CBN allotted N1.06 trillion and N1.191 trillion, respectively, against offers of N700 billion and N600 billion. The largest single-auction overshoot occurred on August 12, when N1.456 trillion was allotted despite N4.4 trillion in bids chasing a N700 billion offer, with the one-year rate rising to 17.59%. That auction followed a N5.21 trillion net liquidity injection into the banking system earlier in the week.
Allotments moderated to N762.88 billion on August 26 and N865.71 billion on September 2, before the CBN allotted N1.054 trillion on September 9. On September 23, allotment fell to N497.59 billion — the first reviewed session in which the amount allotted was lower than the amount offered — after the Monetary Policy Committee reduced the benchmark rate by 350 basis points the previous day.
The Debt Management Office had outlined a Q3 2026 NTB issuance programme targeting N5.8 trillion in gross issuance, comprising N900 billion in 91-day bills, N900 billion in 182-day bills and N4 trillion in 364-day bills. The N8.137 trillion allotted across the eight reviewed auctions exceeded that 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 estimated net new borrowing of about N3.16 trillion after repayments.
