The Central Bank of Nigeria (CBN) has allocated N598.33 billion worth of Nigerian Treasury Bills through three varying maturity periods, with the 365-day bill leading the auction, representing 80% of the overall sales and subscriptions.
A total of ₦482.62 billion was sold for the 365-day tenure, indicating significant investor interest in the long-term instrument.
The 91-day bill experienced the lowest interest, recording subscriptions totaling N48.4 billion but only selling N38.4 billion worth. With this recent offering, the cumulative Treasury bill sales for the year have reached N7.248 trillion.
On Wednesday, May 7, the Central Bank of Nigeria made an offer totaling N550 billion spread across three different tenors during an auction: N50 billion for the 91-day bill, N100 billion for the 182-day bill, and N400 billion for the 364-day bill. Although overall bids decreased to N1.08 trillion compared with the prior auction’s figure of N1.53 trillion, this sale remained over-subscribed. This outcome indicates sustained ample funds within the banking sector.
The persistent demand pressure ensured that yields stayed mostly steady. The 365-day bill experienced a slight rise in yield to 24.41 percent from 24.36 percent, whereas the 182-day and 91-day yields did not change, staying at 20.38 percent and 18.85 percent, respectively. Over the past four auctions, yields have shown consistency, suggesting a stable interest-rate climate even with variations in demand levels.
On May 6, 2025, the system’s liquidity was recorded at N1.21 trillion. Adding to this, matured bills amounting to N287.98 billion increased the overall liquidity significantly, making it over three times larger than the N550 billion put up for auction. This clearly demonstrates strong investor interest in governmental securities due to ample market liquidity conditions.
Provided by SyndiGate Media Inc.
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