The Central Bank of Nigeria (CBN) has successfully allotted approximately N8.14 trillion across eight Nigerian Treasury Bills (NTB) auctions from July to September 2026, significantly surpassing its Q3 target of N5.8 trillion by 40.34%.
A review of the auction results reveals that the CBN's overshooting was largely fueled by strong demand for the 364-day bill. After experiencing high rates in July and August, the CBN reduced stop rates in September, with the 364-day borrowing cost dropping from 17.70% to 15.89%.
Key Auction Insights
During the reviewed period, auction sizes ranged from N600 billion to N750 billion, with allotments fluctuating widely. The 364-day bill dominated, accounting for about 87% of total allotments, highlighting a concentrated interest in long-term instruments.
The Debt Management Office (DMO) had initially set a target of N5.8 trillion for the quarter, which the CBN exceeded by over N2.3 trillion. This success reflects the CBN's strategy to manage liquidity while meeting government financing needs.
As the interest rate environment shifts, all eyes are now on how the CBN will adjust its Q4 NTB issuance program in response to the declining rates observed towards the end of Q3.