CBN returns to primary market with N700bn NTB auction on August 12

The Central Bank of Nigeria, acting for the Debt Management Office, will sell N700 billion in Nigerian Treasury Bills on Wednesday, August 12. This follows the withdrawal of a similar-sized auction on August 5 that was cancelled to avoid overheating liquidity conditions.

A new Invitation to Tender from the apex bank shows the offer will be split across the 91-day, 182-day and 364-day tenors. The return to the primary market comes as about N1.58 trillion in OMO maturities hit the system this week, according to Cordros Securities' weekly economic and market report dated August 7.

Auction details

Bids will be received electronically through the CBN S4 Web Interface between 8:00 a.m. and 11:00 a.m. on Wednesday, August 12. Successful bids will be settled on Thursday, August 13.

All Money Market Dealers are required to submit bids electronically. Each bid must be in multiples of N1,000, with a minimum subscription of N50,001,000. Authorised Money Market Dealers may submit multiple bids for their own accounts, as well as for non-Money Market Dealers or interested members of the public.

The offer is structured as follows: N100 billion for the 91-day Treasury Bill, N100 billion for the 182-day Treasury Bill, and N500 billion for the 364-day Treasury Bill. Total offer size is N700 billion. The securities will be issued through the Dutch auction system.

The CBN said the auction result will be announced on Wednesday, August 12, while allotment letters go to successful bidders on Thursday, August 13. Payment must be made to accounts with the CBN not later than 11:00 a.m. on Thursday, August 13. The apex bank also reserved the right to reject any bid or vary the amount offered based on market realities at the time of the auction.

Why the auction was suspended

The return to the primary market comes one week after the CBN and DMO withdrew an identical N700 billion NTB auction scheduled for August 5. That cancellation followed an aggressive two-day OMO liquidity mop-up, during which the CBN absorbed a combined N4.69 trillion from the banking system on August 3 and 4.

Now, significant liquidity is expected to return to the financial system, with an estimated N1.58 trillion in OMO Bills maturing this week. That could give banks and institutional investors fresh funds to bid for Treasury Bills and support demand across the three tenors.

The 364-day instrument is the dominant component, making up N500 billion, or roughly 71.4% of the total N700 billion auction. This underscores the CBN's continued preference for longer-dated short-term government securities.

What to watch

The August 12 auction is part of the CBN and DMO's broader Q3 2026 Treasury Bills issuance programme, which scheduled several large sessions expected to offer around N700 billion each. It also follows a busy period in Nigeria's fixed-income market, with the CBN intensifying liquidity management through repeated OMO auctions.

In July alone, the apex bank drained N7.18 trillion from the banking system through OMO auctions. Market participants will be watching whether stop rates, particularly on the 364-day Treasury Bill, hold their recent downward trend or shift with the changing liquidity environment.

For investors and businesses, the sizeable OMO maturities this week mean fresh naira liquidity in the system. How the CBN manages that liquidity through this auction will likely shape short-term money market rates and government borrowing costs in the coming days.