CBN Treasury Bills auction raises N4.86trn in Q1 2026 amid strong demand, inflation easing, and continued liquidity tightening
The Central Bank of Nigeria (CBN) and financial market operators in Abuja on Monday, April 13, 2026, confirmed that the apex bank raised an estimated N4.86 trillion through Nigerian Treasury Bills (NTBs) in the first quarter of 2026, driven by strong investor appetite as market participants sought safety amid double-digit inflation pressures.
The performance reflects heightened activity in the CBN Treasury Bills auction market, even as total issuances declined by 12.2 per cent compared to the N5.54 trillion recorded in the corresponding period of 2025.
Primary market data showed exceptionally strong demand, with total subscriptions reaching N14.84 trillion, significantly exceeding the N4.73 trillion initially planned by the CBN for the quarter before the final N4.86 trillion issuance was concluded.
The CBN Treasury Bills auction continues to serve as a key monetary policy instrument used by the Central Bank to manage liquidity, absorb excess cash from the banking system, and moderate inflationary pressures across the economy.
In the review period, stop rates on short-term instruments reflected shifting monetary conditions.
The 91-day Treasury Bill rose to 15.95 per cent in March 2026 from 15.80 per cent in January 2026, while the 182-day bill moved from 18.6 per cent to 16.42 per cent over the same period, reflecting adjustments in response to market demand and policy direction.
Inflation, which stood at 15.06 per cent as of February 2026, showed signs of moderation, reinforcing expectations that monetary tightening measures are gradually filtering through the economy.
Analysts noted that the evolving yield environment is shaping investor behaviour across both fixed income and equity markets.
Market participants also observed that the CBN has been gradually adjusting discount rates on Treasury instruments in response to strong demand and shifting macroeconomic conditions, particularly as benchmark interest rates remain above headline inflation.
For the second quarter of 2026, the CBN plans to issue N3.95 trillion in Treasury Bills, with net issuance projected at N750 billion after maturing obligations of N3.2 trillion are settled.
The programme underscores continued reliance on the CBN Treasury Bills auction framework to manage liquidity and support monetary stability.
A significant feature of the upcoming issuance is the strong allocation to longer-dated instruments, with N2.85 trillion earmarked for 364-day bills.
The remaining issuance includes N700 billion in 91-day bills and N400 billion in 182-day bills, signalling investor preference for higher yields and longer tenors in a high interest rate environment.
The auction calendar indicates six sessions between April and June 2026, with issuances scheduled on April 8, April 22, May 6, May 20, June 3 and June 17.
These sessions will be matched with corresponding maturities totalling N3.2 trillion over the quarter.
Analysts say the dominance of 364-day instruments reflects a deliberate liquidity tightening strategy by the CBN, aimed at extending maturity profiles, reducing refinancing pressures, and stabilising short-term interest rates.
Commenting on market implications, financial analysts noted that sustained high yields could prompt portfolio reallocation from equities into fixed income instruments, particularly among institutional investors seeking risk-adjusted returns and capital preservation.
While concerns remain over potential equity market pressure, analysts also suggest that fundamentally strong dividend-paying stocks may retain investor interest as market participants adopt a more selective investment approach.
Overall, the CBN Treasury Bills auction programme continues to play a central role in shaping Nigeria’s monetary landscape, balancing inflation control objectives with investor demand in a highly liquid but yield-sensitive financial environment.
