The Central Bank of Nigeria (CBN) has announced a N450 billion Nigerian Treasury Bills (NTBs) auction, scheduled for Wednesday, June 17, with settlement set for June 18, sparking questions over a discrepancy with the Debt Management Office (DMO)’s revised borrowing programme, which earmarked as much as N1 trillion for the June auction.
The auction notice, issued to Primary Money Market Dealers (PMMDs), indicates that investors will bid for Treasury Bills across three maturities under the Dutch Auction System.
According to the CBN, the N450 billion offer comprises:
- N150 billion in 91-day Treasury Bills
- N50 billion in 182-day Treasury Bills
- N250 billion in 364-day Treasury Bills
Bidding will take place through the apex bank’s Scripless Securities Settlement System (S4) between 8:00 a.m. and 11:00 a.m. on the auction date.
The minimum bid is set at N50.001 million, with subsequent bids required to be in multiples of N1,000. Dealers may submit multiple bids for themselves or on behalf of clients.
Successful bidders will receive allotment notifications on June 18 and must make payment through their CBN accounts before 11:00 a.m. on the settlement date.
The latest offer size is significantly below the N1 trillion auction volume contained in the DMO’s revised second-quarter borrowing calendar.
Earlier this month, the DMO expanded its Q2 Treasury Bills programme from N3.95 trillion to N4.8 trillion, reflecting the government’s growing financing requirements and increasing reliance on short-term domestic borrowing.
The revised calendar specifically projected a N1 trillion June NTB auction, making the CBN’s N450 billion offer appear inconsistent with the broader borrowing plan.
As of the time of the announcement, neither the CBN nor the DMO had provided clarification on whether the lower offer represents a change in strategy or whether authorities intend to raise additional funds through over-subscriptions.
Despite tight liquidity conditions in the financial system, demand for government securities remains robust.
At the previous Treasury Bills auction held on June 3, the DMO offered N1 trillion and received bids worth almost N1.95 trillion, highlighting sustained investor interest in fixed-income instruments amid attractive yields.
The government has increasingly relied on the 364-day Treasury Bill segment, which accounts for the bulk of planned borrowing under the revised programme.
Under the updated calendar, issuance of one-year Treasury Bills rose to N4.8 trillion, suggesting a deliberate effort to secure longer-term short-dated funding and reduce the pressure of frequent debt rollovers.
