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The Central Bank of Nigeria (CBN) is set to conduct a primary market auction (PMA), offering N650 billion worth of Nigerian Treasury Bills (NTBs) for investor subscription.
The auction will feature the standard tenors—91-day, 182-day, and 364-day bills—amidst a downward trend in spot rates. In the previous auction, the CBN sold approximately N774.13 billion, while total subscriptions surged to N2.408 trillion, reflecting strong investor demand for longer-term bills.
This trend enabled the apex bank to lower spot rates across all maturities. The auction results showed that stop rates for the 91-day, 182-day, and 364-day NTBs declined by 100 basis points (bps), 50 bps, and 189 bps, respectively, closing at 17.00%, 18.00%, and 18.43%.
In February, the Debt Management Office (DMO) successfully raised N1.44 trillion through the PMA, marking a 13.62% increase from the N1.27 trillion raised in January. Analysts anticipate that the upcoming midweek auction will be significantly oversubscribed due to a projected rise in liquidity levels within the money market.
Liquidity inflows are expected to be driven by FAAC disbursements totaling N1.15 trillion, as well as maturities of N50 billion from Open Market Operation (OMO) bills and N1.27 trillion from Treasury Bills. These factors are expected to further enhance market liquidity, according to Cowry Asset Limited.
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