The Central Bank of Nigeria (CBN) said it will raise N850 billion through a fresh Treasury Bills auction on March 11, a move aimed at managing short-term liquidity as demand for government debt remains strong. The planned sale, detailed in an official tender notice to primary market dealers, will bring the total securities raised in a single week to roughly N2 trillion.
The upcoming auction follows a March 4 offering in which the CBN sold N1.01 trillion across three tenors, drawing more than double in investor bids. According to the March 8 notice, the federal government will issue N100 billion in 91-day bills, N150 billion in 182-day bills, and N600 billion in 364-day bills. Settlement is scheduled for the next day, March 12.
Bids must be submitted electronically via the CBN’s Scripless Securities Settlement System (S4) between 8:00 a.m. and 11:00 a.m. on auction day. Each submission must be in multiples of N1,000 with a minimum of N50,001,000. Authorized Money Market Dealers can submit multiple bids for themselves, other non-dealer investors, or members of the public. Allotment letters will be issued Thursday, with payment due by 11:00 a.m. through accounts maintained with the apex bank.
The March 4 auction underscored robust demand, particularly for longer-dated instruments. The 364-day bills drew N2.13 trillion in bids against N800 billion offered, while stop rates climbed to 15.95% for 91-day bills and 16.73% for the 364-day tenor. The one-year instrument recorded the sharpest yield rise, up 0.83 percentage points from the previous auction, reflecting investor appetite for higher returns amid ample liquidity.
The CBN’s S4 platform digitizes the auction process end-to-end, from bid submission to allocation and settlement. The system is designed to reduce operational errors and enhance transparency, while the Dutch auction methodology ensures that pricing reflects investor demand rather than preset rates. Successful bidders receive allocations based on the yields they accept.
Market analysts note that investor behavior at the last auction signals pressure for higher interest rates, despite abundant liquidity in the banking system. Treasury Bills continue to serve as a key tool for the federal government’s short-term borrowing and liquidity management strategies, providing a benchmark for money market pricing.
“The March 11 auction will be closely watched, particularly for longer-tenor instruments, as it will indicate whether the trend of rising yields persists,” said a Lagos-based fixed-income strategist.
With total subscriptions outpacing supply at previous auctions, the government faces growing investor appetite, suggesting continued tight pricing conditions for short-term debt. Market participants will likely monitor both allocation patterns and stop rates to gauge sentiment ahead of broader monetary policy moves.