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The Central Bank of Nigeria (CBN), acting on behalf of the Debt Management Office (DMO), is offering N700 billion in Nigerian Treasury Bills (NTBs) in its second and final auction for August 2026, with investors set to bid across three maturities.
The auction, scheduled for Wednesday, August 26, 2026, comprises 91-day, 182-day and 364-day Treasury Bills, according to the CBN’s invitation to tender. Money market dealers are required to submit their bids through the CBN S4 Web Interface between 8:00 a.m. and 11:00 a.m.
364-Day Bills Take Largest Share
The N700 billion offer is divided across the three tenors, with the longest-dated instrument accounting for the bulk of the issuance.
The breakdown is:
- 91-day bills: N100 billion
- 182-day bills: N100 billion
- 364-day bills: N500 billion
The 364-day bills therefore represent about 71% of the total amount on offer, reinforcing the strong preference for longer-dated government securities in recent auctions.
Strong Demand Sets the Stage
The latest auction comes after significant investor appetite at the previous NTB auction held on August 12.
Investors submitted N4.4 trillion in bids against the N700 billion initially offered, with the 364-day instrument attracting the overwhelming majority of subscriptions.
Demand for the one-year bill reached N4.19 trillion against N500 billion on offer.
Despite the heavy demand, the CBN raised the stop rate on the 364-day instrument to 17.59% from 17.35%, while the stop rates for the 91-day and 182-day bills remained at 16.30% and 16.50%, respectively.
Investors Watch Yields
The outcome of Wednesday’s auction will be closely monitored for indications of where short-term government borrowing costs are heading.
Recent movements in the secondary market have also drawn attention to Treasury Bill yields. The average yield reportedly climbed to 18.89% on August 24, up from 18.13% on August 12.
The combination of elevated yields and strong demand could influence the rates investors submit during the latest primary-market auction.
CBN Continues Liquidity Management
Treasury Bills remain an important tool for the government to raise short-term financing while also providing the CBN with an instrument for managing liquidity within the financial system.
The latest issuance forms part of the broader third-quarter 2026 NTB programme, which targets N5.8 trillion in gross Treasury Bills issuance between July and September.
The programme comprises N900 billion in 91-day bills, N900 billion in 182-day bills and N4 trillion in 364-day bills.
Market Awaits Auction Outcome
The heavy subscriptions recorded at the previous auction suggest that Wednesday’s N700 billion offer could once again attract demand significantly above the amount available.
The strong preference for 364-day instruments indicates that investors remain interested in locking in relatively attractive yields for longer periods.
The previous auction also demonstrated the potential for strong demand to influence final allotments, with the CBN allocating N1.26 trillion in 364-day bills despite an initial offer of N500 billion.
The Bigger Picture
The second August auction comes at a time when Nigeria’s fixed-income market continues to attract substantial investor interest.
For the CBN, the auction provides another opportunity to manage liquidity while supporting the government’s short-term financing programme. For investors, the clearing rates will offer a fresh signal on the direction of Treasury Bill yields and broader money-market conditions.
The key figures to watch after the auction will be total subscriptions, final allotments and stop rates across the three maturities, particularly the 364-day bill, which has continued to dominate investor demand.
