The Central Bank of Nigeria (CBN), on behalf of the Debt Management Office (DMO), is offering N700 billion in Nigerian Treasury Bills (NTBs) in its second and final scheduled auction for August 2026.
The auction is being conducted today, Wednesday, August 26, across three maturities: 91-day, 182-day and 364-day bills.
According to the CBN’s Invitation to Tender, authorised Money Market Dealers are required to submit bids through the CBN S4 Web Interface between 8:00 a.m. and 11:00 a.m.
The offer comprises N100 billion for the 91-day bill, N100 billion for the 182-day bill and N500 billion for the 364-day bill.
The auction will be conducted through a Dutch auction, with the CBN retaining the right to reject bids or adjust the amount offered depending on prevailing market conditions.
The one-year Treasury Bill accounts for more than 70 per cent of the total amount on offer, reflecting the CBN’s continued emphasis on longer-dated government securities.
The previous auction on August 12 provided a strong indication of investor appetite.
That auction attracted N4.4 trillion in subscriptions, more than six times the N700 billion advertised offer.
The 364-day bill alone received N4.19 trillion in bids, more than eight times the amount initially offered.
The CBN subsequently allotted N1.26 trillion on the one-year tenor and raised the stop rate by 24 basis points to 17.59 per cent, from 17.35 per cent.
The 91-day and 182-day bills recorded stop rates of 16.30 per cent and 16.50 per cent, respectively.
Today’s sale follows the cancellation of the first planned August NTB auction.
The CBN had initially scheduled a N700 billion auction for August 6 but withdrew the offer after conducting back-to-back OMO auctions that absorbed about N4.69 trillion from the banking system.
The decision came amid concerns that proceeding with another large Treasury Bills sale could place additional pressure on system liquidity.
The CBN subsequently returned to the market on August 12 with another N700 billion offer, but ultimately allotted approximately N1.456 trillion.
With today’s auction, August’s NTB issuance could therefore exceed N2 billion depending on the final allotment.
The latest auction will be closely monitored for signs of the CBN’s next interest-rate move, particularly after the increase in the 364-day stop rate at the August 12 auction.
The development reversed the easing trend recorded during July, when the CBN reduced the stop rate on the one-year bill at successive auctions to 17.35 per cent.
Market participants are also watching expectations surrounding the next Monetary Policy Committee meeting, with analysts anticipating possible rate cuts in September.
The outcome of today’s auction could provide further insight into how the CBN is balancing liquidity management, government borrowing needs and its broader monetary policy objectives.
Bids must be submitted in multiples of N1,000, subject to a minimum of N50.001 million, while authorised dealers may submit multiple bids on behalf of themselves, non-Money Market Dealers and members of the public.
The auction results are expected to be released today, while allotment letters are scheduled for Thursday, August 27.
Successful bidders are required to make payment to the CBN by 11:00 a.m. on Thursday, August 27.
The latest sale forms part of the CBN’s Q3 2026 NTB Issuance Programme, which targets gross Treasury Bills issuance of N5.8 trillion between July and September.
