CBN Reports Oversubscription Of ₦3.44trn T-Bills

The Central Bank of Nigeria (CBN) said it saw the strongest demand for its N3.44 trillion Nigerian Treasury Bills (NTBills) at the primary market on Wednesday, the highest demand since December 2024.

The apex bank, at the Primary Market Auction (PMA) on Wednesday, had offered T-Bills worth ₦1.15 trillion across the three maturities: ₦150 billion worth for the 91-day, ₦200 billion for the 182-day, and ₦800 billion for the 364-day tenors.

It noted that investors showed the largest interest in the 364-day bill, with demand four times the size of its offer.

However, the CBN only sold ₦1.06 trillion worth among all three maturities.

READ ALSO: Davos: Nigeria Must Deliberately Target Global Investors — Okonjo-Iweala

The last time demands were this strong was on December 4, 2024, when investors’ demands crossed five trillion naira during peak inflationary and high-interest environment.

Yields ticked higher on the short-tenured bills, while the 364-day softened slightly but continues to deliver high returns.

The 91-day yield ticked upward to 16.50 per cent, while the 182-day true yield climbed to 18.17 per cent from 17.99 per cent at the last auction.

While the  364-day saw a drop in true yield to 22.49 per cent from 22.65 per cent at the last auction.

The primary catalyst for the current surge in yields is a combination of aggressive government borrowing and the Central Bank’s tightening monetary stance.

“The 2026 fiscal year has arrived with a projected deficit of ₦23.85 trillion. With international capital markets remaining expensive for emerging economies, the Federal Government is looking inward to the domestic market to fund the lion’s share of this shortfall.

“The Q1 2026 issuance calendar reflects this, with an intended borrowing of ₦7.55 trillion in the first three months alone. This huge supply of paper naturally pushes yields higher as the government competes for investor liquidity.”

Beyond the government’s need for cash, the Central Bank is intentionally allowing rates to rise to combat persistent inflation and stabilise the Naira.

By keeping yields attractive, specifically the one-year true yield above 22 per cent, the CBN aims to mop up excess liquidity and attract Foreign Portfolio Investment (FPI).

High yields make Nigerian debt attractive to offshore investors, bringing in the foreign exchange needed to support the Naira.

The development was after the Director-General of the World Trade Organisation, Dr Ngozi Okonjo-Iweala, advised the Nigerian government to deliberately target global investors and supply chain relocations to reduce import dependence, deepen manufacturing, and drive job creation.

She made the remarks on Wednesday at Nigeria House during the ongoing World Economic Forum in Davos.

At Davos, also, the Minister of Foreign Affairs, Yusuf Tuggar, urged international investors to look beyond the security challenges facing Nigeria, saying that the reported geopolitical risks were exaggerated.

Tuggar noted that incidents of insecurity being recorded across the country are “isolated cases” and not the reality across the country.

READ ALSO: Nigeria’s Economic Risks Are Overhyped, Tuggar Tells Foreign Investors

According to him, instability in the Sahel had spilled into Nigeria.

“We are urging investors to treat us the same way they treat other countries. The fact that there were isolated incidents in some places in the country does not mean that it’s the entire country.

“Conversations that are taking place here also have to do with risk buyers, where the issue of geopolitical risk, in particular, is over-hyped when it comes to Africa, which doesn’t apply in other parts of the world.

“It’s very important to see the conflict for what it is. It’s a regional conflict that has spilled over into Nigeria. It is not removed from the conflict in the Sahel. It’s not removed from what happened in Libya many years ago,” he said.