Treasury bill auction for Wednesday, 26 August 2026, saw massive investor interest, with total subscriptions hitting N3.79 trillion against an offer of N700 billion, according to data from the Debt Management Office, DMO, and the Central Bank of Nigeria, CBN.
Demand outstripped supply by 541% underscoring strong appetite for risk-free government securities amid ongoing volatility in other asset classes.
A breakdown of the offer showed the CBN put N500 billion on the 364-day bill, N100 billion on the 182-day bill, and N100 billion on the 91-day bill with interest rate at 17.15%, 16.50% and 15.65% respectively.
Bids were however concentrated in the 364-day paper. The 91-day and 182-day maturities recorded significantly lower subscriptions of 103.20 billion and 52.93 billion respectively, with the 182-day paper again attracting the least interest. This pattern has been consistent in the last auctions since late 2025.
The Debt Management Office eventually allotted N89.10 billion at a stop rate of 16.30% for the 91- day treasury bill and only N35.59 billion was allotted at a stop rate of 16.50% for 182- day treasury bill. For the 364-day treasury bill, N638.190 billion was offered above the initial N500 billion declared to be offered.
With analysis, the surge can be attributed to key factors. T-bills remain one of the lowest-risk instruments available which make it convenient for investors seeking risk-free returns and safe government securities. Secondly, banks, pension fund administrators, and corporates continue to hold substantial cash, with limited alternative investment options offering comparable risk-adjusted returns. This makes t-bills attractive as well
All eyes are now on the next auction. The DMO may increase offer sizes to meet demand. Market watchers will also monitor if the CBN raises or lower yields on the 91-day, 182-day and 364-day bills. The direction of interest rates will remain the key driver of T-bill demand. This continues to impact Nigeria's macro and micro environment.