Nigeria Treasury Bills Yield Drop and Auction Cancelled Amid Liquidity Tightening

Nigerian Treasury bill yields slipped 4 basis points to an average of 18.11% as investors increased demand for longer‑duration papers, seeking higher real returns on the naira asset. Herwood Securities noted strong buying in bills maturing in 2027 and 2026, while yields on some shorter‑dated issues rose modestly.

The Central Bank of Nigeria, acting for the Debt Management Office, withdrew the scheduled August 5 Treasury‑Bill auction only two days after it removed N4.69 trillion of liquidity through back‑to‑back Open Market Operations. Market participants said the massive OMO absorption left little room for additional Treasury‑Bill issuance without over‑tightening liquidity, prompting the cancellation while keeping the rest of the Q3 2026 issuance calendar unchanged.