Investor appetite for Nigerian Treasury Bills surged on February 4, 2026, as total subscriptions at the Central Bank of Nigeria’s (CBN) Primary Market Auction (PMA) soared to ₦4.59 trillion, nearly four times the ₦1.15 trillion on offer.
The auction marked the highest subscription level since December 2024, underscoring investors’ determination to lock in elevated yields amid tightening liquidity conditions and expectations of future rate adjustments.
Ayodeji Ebo, Managing Director of Optimus by Afrinvest, said the strong demand reflects investors’ preference for securing yields above 20 per cent while they remain available.
“This level of subscription shows disciplined liquidity management and a clear flight to yield,” Ebo noted.
Investor interest was overwhelmingly skewed toward longer tenors. The 364-day bill attracted a staggering ₦4.39 trillion in subscriptions against an ₦800 billion offer, with the CBN allotting ₦808.78 billion.
By contrast, the 182-day bill recorded ₦123.41 billion in bids versus a ₦200 billion offer, while the 91-day bill saw ₦66.05 billion in subscriptions for a ₦150 billion offer.
Analysts at Meristem attributed the strong participation to investors positioning ahead of rising rates and abundant system liquidity.
According to Fahad Ali, a bond trader at UBA, excess liquidity from maturing Treasury bills, Open Market Operations (OMO), and coupon payments played a major role in the oversubscription.
Nigeria’s financial system is expected to receive a liquidity inflow of about ₦8.61 trillion in February 2026, driven largely by maturing OMO bills, T-bills, and government bond coupons.
Despite the intense demand, the 364-day stop rate declined by 1.48 percentage points to 16.98 per cent, while its true yield remained strong at 20.46 per cent. Shorter tenors recorded marginal increases, with stop rates rising to 15.84 per cent for the 91-day bill and 16.65 per cent for the 182-day bill.
Ebo expects the trend to spill over into the broader fixed-income market, influencing the pricing of commercial papers, bonds, and money market instruments.
“Longer-dated bills continue to offer the most compelling value for investors seeking to lock in high returns,” he said.
He added that rising yields will also boost activity in the secondary market, where retail investors can access T-bills through banks and digital investment platforms.
