Naira’s Siren Song: CBN’s N500bn Treasury Bill Beckons Investors

The Central Bank of Nigeria (CBN) is scheduled to open N500 billion worth of Treasury bill instruments for investors’ subscription at the midweek auction. The Apex Bank will offer Nigerian Treasury bills with 91-day, 182-day, and 364-day maturities to investors on Wednesday at the primary market auction.

In their separate market update, fixed-income market analysts projected that demand will remain strong, supported by sustained appetite for naira assets, as seen at recent auctions.

Banks and other authorised dealers have continued to park funds in the Nigerian Treasury bills due to elevated yields in the secondary market. With disinflation, which has boosted real return on investment, investors are expected to double down on subscription levels, analysts said.

The Treasury Bills market traded with a modest bullish tone this week, supported by selective demand across the curve. Activity began quietly, with interest concentrated at the long end despite limited offers.

As the week progressed, demand intensified for mid-to-long tenors—especially March, April, and May maturities—though wide bid-offer spreads constrained volumes. Trading was underpinned by local investors’ demand for Nigerian Treasury bills and offshore participants’ sell-offs of OMO instruments following volatile oil prices.

Across the market segments, the average yield declined by 13 bps to 20.8% in the Nigerian Treasury bills market, while it increased by 4 bps to 26.9% in the OMO bills segment. #CBN to Offer Treasury Bills worth N500 billion for Sale.
Credit: Market Force Africa; Texts excluding Headlines.