By 
The Central Bank of Nigeria (CBN) is set to offer N700 billion in Treasury bills (T-bills) at its September auction as the apex bank continues to manage liquidity and shape short-term interest rates in the financial system.
The auction, being conducted on behalf of the Debt Management Office (DMO), will feature 91-day, 182-day and 364-day Nigerian Treasury bills.
The 91-day and 182-day instruments have been allocated N100 billion each, while the 364-day bill will account for N500 billion, representing more than 70 per cent of the total offer.
Money market dealers are expected to submit bids through the CBN S4 Web Interface on September 2, 2026. The auction results are scheduled for release the same day, with allotment set for September 3. Successful bidders are required to make payment by 11:00 a.m. on the allotment date.
The heavy weighting towards the one-year bill highlights continued emphasis on longer-dated instruments as investors assess yields and the outlook for monetary policy.
At the August 26 NTB auction, the stop rate on the 364-day instrument was reduced by 44 basis points to 17.15 per cent, following an increase to 17.59 per cent at the August 12 auction.
The September auction could therefore provide further insight into the direction of short-term interest rates ahead of the next meeting of the Monetary Policy Committee (MPC).
Part of N5.8tn Q3 issuance programme
The September offering forms part of the N5.8 trillion Treasury bills issuance programme for the third quarter of 2026, reflecting the continued use of government securities as part of Nigeria’s domestic financing and liquidity-management operations.
Under the programme, the DMO and CBN plan to issue N900 billion through 91-day bills, another N900 billion through 182-day instruments and N4 trillion through 364-day bills.
Treasury bills worth approximately N2.64 trillion are expected to mature during the quarter, leaving an estimated net borrowing requirement of about N3.16 trillion.
The September 2 auction is among the final three NTB auctions scheduled under the Q3 programme.
Strong investor demand persists
Investor appetite for government securities has remained strong, particularly for longer-tenor instruments offering relatively attractive naira yields.
At the August 12 NTB auction, investors submitted bids worth about N4.4 trillion against the N700 billion advertised, with the 364-day bill alone attracting approximately N4.19 trillion in subscriptions.
Cumulative allotments at the August 12 and August 26 auctions reached about N2.22 trillion, compared with a combined advertised offer of N1.4 trillion.
The strong demand comes as investors continue to weigh the returns available in the fixed-income market against expectations of a potential easing of monetary conditions.
CBN steps up liquidity management
Beyond Treasury bills, the CBN has increasingly relied on a combination of NTBs and Open Market Operations (OMO) securities to absorb excess liquidity from the banking system.
The approach has become a key feature of the money market as the apex bank seeks to balance liquidity conditions with its broader monetary policy objectives.
The September auction will therefore be closely watched by fixed-income investors and market participants for signs of whether the CBN intends to maintain its relatively firm liquidity-management stance or allow short-term yields to ease further.
With the 364-day instrument accounting for the largest share of the September offer, demand and the resulting stop rate could provide an important signal about investor expectations and the CBN’s approach to managing liquidity in the months ahead.
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