The Central Bank of Nigeria (CBN) is set to raise N850 billion through a fresh Treasury Bills (NTBs) auction scheduled for March 11, 2026, signaling continued efforts by the Federal Government to manage short-term borrowing and liquidity in the financial system.
The upcoming auction will bring the total funds raised from NTBs within just one week to around N2 trillion, underscoring the robust investor appetite for government securities despite prevailing high yields.
The announcement was disclosed in an official tender notice circulated to primary market dealers by the apex bank on behalf of the Debt Management Office (DMO). The notice outlines the terms and procedures for investors wishing to participate in the auction.
This latest move comes barely a week after the CBN conducted a Treasury Bills sale on March 4, 2026, which raised N1.01 trillion from investors amid strong demand across all tenors. Market observers noted significant oversubscription during that auction, particularly for the longer-tenor 364-day instruments.
Auction Details
According to the auction notice, the Federal Government will offer NTBs worth N850 billion across three tenors under the Dutch auction system, with settlement scheduled for the following day:
- 91-day Treasury Bills: N100 billion
- 182-day Treasury Bills: N150 billion
- 364-day Treasury Bills: N600 billion
Prospective investors are required to submit their bids electronically through the CBN’s Scripless Securities Settlement System (S4) between 8:00 a.m. and 11:00 a.m. on Wednesday, March 11. Each bid must be in multiples of N1,000, with a minimum subscription of N50,001,000. Authorized Money Market Dealers can submit multiple bids on behalf of themselves, non-money market dealers, or members of the investing public.
Successful bidders will receive allotment letters on Thursday, March 12, 2026, and payments must be completed by 11:00 a.m. via accounts held with the apex bank.
Insights from the Previous Auction
The March 4 auction highlighted persistent investor interest in government securities, with total oversubscription reaching N2.34 trillion against N1.05 trillion offered across the 91-day, 182-day, and 364-day bills. Demand was particularly strong for the 364-day bill, which attracted N2.13 trillion in bids compared with N800 billion available.
Stop rates recorded a moderate uptick for most tenors, with the 91-day bill at 15.95%, the 182-day bill flat at 16.65%, and the 364-day bill climbing to 16.73%—an increase of 0.83 percentage points from the previous auction. Analysts interpreted this as a signal of investors’ willingness to accept higher yields amid ample liquidity in the financial system.
Digitalized Auction System Enhances Transparency
The NTB auction process is fully digitalized through the CBN’s S4 platform, which facilitates bid submission, allocation, and settlement within a unified electronic framework. According to the apex bank, this system reduces operational errors and enhances transparency, while the Dutch auction format ensures pricing reflects actual investor demand rather than predetermined rates.
Market participants will closely watch the March 11 auction to gauge whether yields, particularly on longer-tenor bills, may continue to rise, as investors seek higher returns in a low-interest environment. Treasury Bills remain a primary instrument for the Federal Government’s short-term financing and liquidity management, making each auction a key indicator of market sentiment.