Nigeria’s most recent treasury bills auction, held on February 19, 2025, registered total subscriptions of N2.41 trillion, underscoring ongoing investor interest across all three tenors offered.
However, this figure represents a decline from the N3.22 trillion recorded during the previous auction on February 5, 2025. The Central Bank of Nigeria (CBN) increased the allotments, particularly for the 364-day tenor, while the stop rates trended lower—signals of a shift in investor sentiment and yield expectations.
Investor appetite for shorter-term securities was notably robust. The 91-day treasury bills, which had an offer size of N80 billion, attracted subscriptions totaling N62.14 billion, a significant jump from the N42.37 billion seen in the last auction. In this tenor, the CBN allocated N34.77 billion at a top rate that dropped to 17 percent, compared to the 18 percent in the earlier auction.
Similarly, the 182-day bills, with an offer size of N120 billion, experienced a surge in subscriptions, rising to N49.88 billion from N19.52 billion, while the CBN allotted N34.98 billion at a stop rate of 18 percent—slightly lower than the previous 18.5 percent.
Conversely, demand for the 364-day bills, which typically command the highest subscriptions, fell significantly. Although the offer size for this tenor was N500 billion, total subscriptions dipped to N2.3 trillion from N3.16 trillion in the previous auction.
Despite the lower demand, the CBN increased its allotment for the 364-day bills to N704.38 billion, up from N619.36 billion, and the stop rate fell to 18.43 percent from 20 percent. Bids for these longer-term instruments ranged from 16.5 percent to 25 percent, highlighting strong competition among institutional investors seeking extended maturities.
The overall decline in stop rates across all tenors indicates that investors are now willing to accept lower yields, reflecting an adjustment in their expectations, likely influenced by the CBN’s broader liquidity management strategies. The maturity dates for successful bids have been set for May 22, 2025, for the 91-day bills; August 21, 2025, for the 182-day bills; and February 19, 2026, for the 364-day bills—providing varied options for portfolio planning and liquidity management.
This downward movement in yields is consistent with prevailing trends in the fixed-income market, where stable liquidity conditions have contributed to moderating yields. While total subscriptions have dipped, the sustained interest across the different tenors reaffirms the attractiveness of Nigerian government securities in the current economic climate.
