Nigeria's Central Bank Raises N1.1 trillion in Treasury Bill Auction

The Central Bank of Nigeria (CBN) conducted a Treasury bill auction that allocated about N1.1 trillion across the standard 91‑day, 182‑day and 364‑day tenors. Demand was strong, with a bid‑to‑cover ratio of 3.71 for the one‑year bill, far above the 2.08 ratio at the previous auction. Spot rates on the 91‑day and 364‑day bills rose to 16.30% and 17.70% respectively, while the 182‑day rate held at 16.50%.

The auction followed the repayment of N2.21 trillion of maturing open‑market operation (OMO) bills, which added cash to the banking system. Consequently, placements at the Standing Deposit Facility jumped 87% and total system liquidity rose modestly. The CBN plans to issue about N5.8 trillion in Treasury bills between July and September, targeting a net issuance of roughly N3.16 trillion to manage liquidity and support government financing.