364-day bills take lion’s share of Wednesday’s offer as government targets N5.8tn borrowing programme.
Another N500 billion is expected to be raised by the Federal Government on Wednesday through the sale of Nigerian Treasury Bills, as the Central Bank of Nigeria, on behalf of the Debt Management Office, proceeds with its September borrowing programme.
Set for September 9, 2026, the auction will feature three maturities — 91 days, 182 days and 364 days — with the 364-day tenor accounting for 60% of the total amount on offer.
Under the offering, N100 billion each will be available in the 91-day and 182-day Treasury Bills, while N300 billion will be offered through the 364-day bills.
The N500 billion offer is the smallest single Treasury Bills auction scheduled under the third-quarter 2026 issuance programme, marking a reduction from the N700 billion auctions conducted at various points earlier in the quarter.
Money Market Dealers participating in the auction are expected to submit their bids through the CBN S4 Web Interface.
The auction results are expected to be released on Wednesday, with successful bidders scheduled to receive their allotment letters on Thursday, September 10. Payment for successful bids must be made to the CBN by 11:00 a.m. on the same day.
Bids start at N50.001m
Under the auction guidelines, each bid must be submitted in multiples of N1,000, while the minimum bid size has been fixed at N50.001 million.
Dealers are permitted to submit multiple bids, either for their own accounts or on behalf of eligible non-Money Market Dealers and members of the public.
However, the CBN retains the discretion to reject any bid or alter the amount offered at the auction, depending on prevailing market conditions.
The flexibility gives the apex bank room to respond to developments in the money market, including movements in yields, liquidity conditions and investor demand for government securities.
N5.8tn Treasury Bills planned for Q3
Wednesday's auction forms part of the government's broader N5.8 trillion Treasury Bills issuance programme for the third quarter of 2026.
Under the programme, the DMO and CBN plan to issue N900 billion through 91-day bills, N900 billion through 182-day bills and N4 trillion through 364-day instruments between July and September.
The 364-day Treasury Bills account for roughly 69% of the total planned issuance, highlighting the government's preference for longer short-term borrowing instruments during the quarter.
The programme also includes the refinancing of maturing obligations. Treasury Bills worth approximately N2.644 trillion are expected to mature during the quarter.
After taking those maturities into account, the government's estimated net new borrowing through Treasury Bills during the period stands at about N3.16 trillion.
N700bn auctions dominated earlier quarter
The September auction comes after a series of larger N700 billion Treasury Bills offers earlier in the quarter.
The CBN had scheduled N700 billion auctions on July 8, July 29, August 12 and August 26, underscoring the scale of the government's short-term borrowing requirements during the first two months of the quarter.
The latest N500 billion offer represents a moderation in the size of the individual auction as the third quarter approaches its conclusion.
Treasury Bills remain one of the Federal Government's key short-term financing instruments. They are government-backed securities issued to raise funds for periods of up to 364 days and are typically sold at a discount to their face value.
Investors receive the face value at maturity, with the difference between the purchase price and maturity value representing the return on the investment.
The outcome of Wednesday's auction will therefore be closely watched by investors and market participants for signals on demand, pricing and yields in the short-term government securities market.