The Central Bank of Nigeria (CBN) allotted N1.05 trillion at its Wednesday, September 9, 2026, Treasury Bills primary market auction, cutting the stop rate on the one-year bill to 16.62%, its lowest level in recent weeks.
The 16.62% yield marks the third straight cut on the 364-day tenor, suggesting the direction of interest rate movement the apex bank is beginning to pursue after more than three years of elevated interest rates and monetary tightening policy.
The primary market auction results show that investors submitted a combined N2.64 trillion in bids against the N750 billion offered, while the CBN allotted N1.054 trillion, roughly N304.18 billion above the original offer size.
In the invitation for tender, the CBN, in conjunction with the Debt Management Office (DMO) had advertised N500 billion offer. As in previous primary market auctions, demand heavily concentrated on the 364-day bill, while the shorter tenors recorded notably weak interest.
Combined, the auction drew total subscriptions of approximately N2.64 trillion against the N750 billion offer, a bid-to-offer ratio of about 3.52 times, with the CBN ultimately allotting N1.054 trillion, roughly N304.18 billion above the original offer size.
Stop rate fell 22 basis points to 16.62% from 16.84% at the September 2 auction.
Maturity dates for the three tenors are December 10, 2026 (91-day), March 11, 2027 (182-day), and September 9, 2027 (364-day).
The scale of demand concentration was stark: the 364-day bill alone accounted for approximately 96% of total subscriptions across all three tenors, drawing far more than the combined N365.94 billion subscribed for the 91-day and 182-day bills together.
Wednesday’s auction extends the easing trend at the long end of the curve seen at the previous two sessions.
With Wednesday’s further 22-basis-point reduction, the one-year NTB stop rate has now fallen a combined 97 basis points across three consecutive auctions, even as demand at each auction remained exceptionally strong.
However, the 364-day bill’s 16.62% yield still represents the most attractive return on the curve relative to the shorter tenors, even with the lower stop rate, which is why investors keep coming with exceptional demand.
Investors have demonstrated sustained preference for locking in yields over a full year even as short-tenor appetite remains conspicuously weak.
The easing trend adds to the evidence that Nigeria’s fixed income market is entering a rate-easing phase after months of elevated yields.
Wednesday’s auction result suggests a continuing signal of where the broader interest rate environment is heading as the CBN’s Monetary Policy Committee (MPC) meets in the days ahead.
