CBN Raises N8.14tn in Treasury Bills, Exceeds Q3 Target by N2.34tn

The Central Bank of Nigeria raised N8.14tn through Treasury bills issuances in the third quarter of 2026. The amount surpassed the Debt Management Office’s N5.8tn target by N2.34tn, as investor demand exceeded the government’s borrowing plans.

Allotments Beat Planned Issuance

A review of eight Nigerian Treasury Bills auctions held between July and September shows total allotments were 40.34 per cent above the planned issuance for the quarter. The overshoot reflected strong demand for government securities during the period.

364-Day Bill Leads

The 364-day Treasury bill accounted for the largest share of the funds raised. It attracted N7.09tn, representing 87 per cent of total allotments during the period. The concentration of borrowing in the one-year instrument came amid high yields in July and August, which sustained investor interest in government securities.

Yields Fall in September

Yields began to decline in September following a shift in monetary policy. The CBN lowered stop rates across the three tenors. The stop rate on the 364-day bill fell to 15.89 per cent at the 23 September auction, down from a quarterly peak of 17.70 per cent recorded on 8 July. This represents a decline of 181 basis points, reflecting the change in borrowing costs in the primary Treasury bills market over the quarter.

What It Means

The quarter’s auctions show how T-bill yields moved with monetary policy. Lower stop rates in September mean the government paid less to borrow at the short end, while investors earned lower returns on the 364-day bill compared with the July peak. The CBN’s N8.14tn issuance also shows the scale of liquidity absorbed through Treasury bills during the period.