The Debt Management Office (DMO) is offering N800 billion in Nigerian Treasury Bills (NTBs) at its November 11, 2026 auction, significantly exceeding the N148.565 billion in securities due for maturity and creating a potential net borrowing of N651.44 billion.
The auction, being conducted by the Central Bank of Nigeria (CBN) on behalf of the DMO, will use the Dutch auction system, with settlement scheduled for Thursday, November 12.
The offer comes amid substantial liquidity in the banking system and follows recent auctions in which the DMO rejected a significant proportion of investors’ bids to keep borrowing costs relatively low.
The N800 billion offer is approximately 5.4 times the value of Treasury Bills maturing during the period, indicating the government’s intention to raise additional funds beyond refinancing existing obligations.
The offer is distributed across three tenors:
- 91-day bills: N100 billion, representing 12.5 per cent of the offer.
- 182-day bills: N100 billion, also accounting for 12.5 per cent.
- 364-day bills: N600 billion, representing 75 per cent of the total.
The N148.565 billion in maturing securities comprises 91-day Treasury Bills due for settlement on November 12.
If the DMO allots the entire N800 billion, the government will raise approximately N651.44 billion in fresh funding after accounting for the maturing obligations.
However, the advertised offer does not necessarily represent the final amount the government will raise, given the DMO’s recent preference for selective allotments.
At the November 4 auction, the DMO allotted N509.401 billion against an N800 billion offer, despite receiving N2.045 trillion in subscriptions. This meant that approximately 75 per cent of investors’ bids were rejected.
The November 11 auction will test whether the DMO maintains this selective approach or increases allotments to meet its funding requirements.
Recent Treasury Bills auctions suggest the DMO is prioritising borrowing-cost management over accepting all available investor subscriptions.
At the October 28 auction, the DMO allotted only N71.16 billion and rejected approximately N1.84 trillion in bids, while stop rates declined across the three tenors.
The 91-day stop rate fell to 15.40 per cent, while the 182-day rate declined to 15.79 per cent. The 364-day bill cleared at 15.80 per cent, a rate maintained at the November 4 auction.
This followed the October 7 auction, when the DMO raised N968.47 billion against an offer of N900 billion, with the 364-day stop rate settling at 15.85 per cent.
The pattern suggests the debt manager is carefully balancing its funding needs against the cost of borrowing, rather than allowing strong investor demand to push yields higher.
