The Central Bank of Nigeria (CBN) is set to raise ₦5.8 trillion through Treasury Bills in the third quarter of 2026, marking a significant increase in short-term government borrowing as part of the Federal Government’s financing strategy for the 2026 budget.
The figure represents a sharp 241 percent year-on-year increase compared to the ₦1.76 trillion raised in the same period of 2025, underscoring a stronger reliance on domestic debt instruments to support fiscal operations.
The development was disclosed in the CBN’s Nigeria Treasury Bills Issue Programme for Q3 2026, which outlines scheduled issuances between July 1 and September 23, 2026, with settlement running through September 24.
Treasury Bills are short-term debt securities used by the Federal Government to borrow from the public, typically with maturities of less than one year. Beyond funding government needs, they also serve as a key monetary policy tool used by the apex bank to manage liquidity and control money supply in the economy.
Heavy tilt toward long-tenor instruments
According to the programme, the CBN will issue a total of ₦900 billion in 91-day bills, ₦900 billion in 182-day bills, and a dominant ₦4 trillion in 364-day bills, reflecting a strong preference for longer-dated instruments within the short-term borrowing mix.
The issuance is distributed across the quarter as follows:
In July 2026, the apex bank plans to raise ₦2 trillion, comprising ₦300 billion in 91-day bills, ₦300 billion in 182-day bills, and ₦1.4 trillion in 364-day instruments.
In August 2026, total issuance is projected at ₦2.1 trillion, split into ₦300 billion (91-day), ₦300 billion (182-day), and ₦1.5 trillion (364-day bills).
In September 2026, the CBN is expected to raise ₦1.7 trillion, made up of ₦300 billion in 91-day bills, ₦300 billion in 182-day bills, and ₦1.1 trillion in 364-day bills.
Rising reliance on domestic debt instruments
The sharp increase in issuance highlights the growing importance of Treasury Bills in Nigeria’s domestic borrowing framework, particularly as fiscal authorities seek predictable, market-based funding channels.
While serving as a funding mechanism for government expenditure, Treasury Bills also play a critical role in liquidity management, helping the CBN absorb excess cash from the financial system and stabilise short-term interest rates.
The latest issuance plan reflects both the scale of the government’s financing requirements for 2026 and the continued central role of domestic debt markets in supporting macroeconomic stability.