The Central Bank of Nigeria (CBN) has reported a strong demand for the Nigerian Treasury Bill (NTB) at the primary auction on Wednesday with N3.44 trillion subscriptions by investors, representing the highest subscription over the past months.
Data from the apex bank on the results of the debt instrument auction showed that at the Primary Market Auction (PMA), it put up a total offer of N1.15 trillion across the N150 billion worth for the 91-day, N200 billion for the 182-day, and N800 billion for the 364-day tenors
According to the CBN, investors showed the strongest interest in the 364-day TB, with their demand quadrupling the value of the offer.
However, the apex bank reported that only N1.06 trillion worth was sold in all three maturities.
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A further analysis of the TB auction results reflected that the 91-day yield surged to 16.50%, while the 182-day true yield climbed to 18.17%, from 17.99% at the last December 2025 auction while the 364-day yield marginally dipped to 22.49% from 22.65% at the last auction.
With a projected budget deficit of N23.85 trillion in the 2026 fiscal year, the Federal Government is looking inward to the domestic market to bridge the deficit, especially as interest on international capital markets borrowing is rising amid uncertainties in the global economic space.
Data released by the fiscal authorities showed that in the first quarter of the fiscal year, the Federal Government intended borrowing of N7.55 trillion in the first three months alone, thereby pushing debt instruments’ yields higher as it will be competing with other borrowers for investor liquidity.
Apart from the government’s need for cash, the CBN is allowing interest rates to rise as part of its monetary policy measures moderate inflation and stabilize the Naira at the foreign exchange (FX) markets.
