The Federal Government, through the Central Bank of Nigeria, CBN, has raised ₦2.51 trillion from investors following the successful conduct of its Treasury Bills, T-bills, auction on March 5 and Open Market Operations, OMO, auction on March 6.
The T-bill auction, which initially sought to raise ₦650 billion, witnessed strong investor participation, pushing total subscriptions to ₦1.92 trillion. Most of the bids were directed at the 364-day instrument. Despite the high demand, the stop rate on the one-year bill fell to 17.82 percent, the lowest since September 2024.
The auction recorded strong participation across all maturities, with the 364-day bill accounting for 94 percent of total subscriptions.
Investors showed significant interest in short-term and medium-term bills as well. The 91-day bill, which had ₦70 billion on offer, received ₦62.57 billion in subscriptions, with ₦61.52 billion allotted at a stop rate of 17 percent. The 182-day bill, which had an offer size of ₦80 billion, attracted ₦60.05 billion in subscriptions, while ₦50.95 billion was allotted at a stop rate of 17.75 percent.
The 364-day bill saw the highest demand, with ₦500 billion on offer drawing ₦1.80 trillion in bids. The government ultimately allotted ₦717.97 billion, with the stop rate closing at 17.82 percent, down from 18.50 percent in February. In total, the government allotted ₦830.44 billion, exceeding the initial ₦650 billion offer, as investors took advantage of the high-yield environment.
In a similar development, the CBN conducted an OMO auction on March 6, attracting ₦1.88 trillion in total subscriptions, more than three times the ₦600 billion initially offered. Despite the strong demand, stop rates on the 355-day and 362-day bills declined significantly, reflecting a shift in the fixed-income market as the apex bank moved to moderate yields.
The latest auction saw the stop rate for the 355-day bill drop to 19.19 percent from 21.32 percent, representing a 2.13 percentage point decline. Similarly, the 362-day bill cleared at 19.45 percent, down from 21.35 percent, marking a 1.90 percentage point decline.
Investor appetite remained strong, prompting the CBN to sell ₦1.68 trillion in total, surpassing its initial offer. The 355-day bill attracted ₦760.70 billion in subscriptions, with an allotment of ₦725.70 billion at a stop rate of 19.19 percent. The 362-day bill received even higher interest, with ₦1.12 trillion in bids, while the CBN allotted ₦951.20 billion at a stop rate of 19.45 percent.
The decline in stop rates comes amid continued efforts by the CBN to fine-tune liquidity management, balancing inflation control with investor confidence. Despite the lower rates, demand for OMO bills remains exceptionally high, particularly for the 362-day bill, which accounted for nearly 60 percent of total subscriptions.
The auction results highlight the continued liquidity in the fixed-income market, even as monetary authorities weigh the impact of balancing foreign capital inflows with sustainable borrowing costs.
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