The Central Bank of Nigeria (CBN) allotted approximately N8.14 trillion across eight Nigerian Treasury Bills (NTB) auctions between July and September 2026, about 40.34% more than the N5.8 trillion targeted for the third quarter (Q3).
A Nairametrics review of primary market auction results for the three-month period shows that the CBN significantly overshot its advertised offers across most sessions, driven largely by overwhelming demand for the 364-day bill.
After months of elevated rates in July and August, the apex bank eventually crashed stop rates across the three standard tenors in September, lowering the 364-day borrowing cost from a Q3 peak of 17.70% on July 8 to 15.89% by September 23.
Across the eight confirmed auctions reviewed, offer sizes ranged from N600 billion to N750 billion per session, while allotments ranged from N497.59 billion to N1.456 trillion.
The September 23 auction was the first reviewed session in the quarter in which the amount allotted was lower than the amount offered.
The Debt Management Office (DMO), working with the CBN, had outlined an expanded Q3 2026 NTB Issuance Programme targeting N5.8 trillion in gross issuance between July and September.
The swings in allotments and rates during the quarter reflected the CBN’s use of Treasury Bills to meet government financing requirements while also managing liquidity in the financial system.
The 364-day bill remained the dominant instrument across the eight auctions, while its stop rate declined substantially toward the end of the quarter.
Its stop rate fell from a Q3 peak of 17.70% on July 8 to 15.89% by September 23, representing a cumulative decline of 181 basis points, with 146 basis points of that decline occurring during the final four auctions.
With the DMO’s N5.8 trillion Q3 issuance target already exceeded, attention now shifts to how the CBN calibrates its Q4 2026 NTB issuance programme in a materially lower interest-rate environment.
