CBN Allots N8.14tn in T-Bills, Surpasses Q3 Target by N2.34tn

• The CBN allotted N8.14tn through eight Treasury bills auctions in Q3, exceeding the N5.8tn target by N2.34tn, or 40.34 percent.

• The 364-day bill dominated the auctions, accounting for N7.09tn, or 87 percent of total allotments during the quarter.

• Its stop rate fell 181 basis points from a quarterly peak of 17.70 percent in July to 15.89 percent by September 23 as Treasury bill yields declined.

September 28, () – The Central Bank of Nigeria allotted N8.14tn through Treasury bills auctions in the third quarter of 2026, exceeding the N5.8tn issuance target by N2.34tn as strong investor demand allowed the government to raise substantially more than initially planned.

A review of eight Nigerian Treasury Bills auctions conducted between July and September showed that total allotments were 40.34 percent above the planned issuance for the quarter.

The outcome was driven largely by strong demand for the longer-dated 364-day instrument, even as borrowing costs declined towards the end of the quarter.

364-day bill dominates Q3 borrowing

The 364-day Treasury bill accounted for N7.09tn of the total allotments, representing about 87 percent of the N8.14tn raised during the quarter.

The concentration in the one-year instrument came as yields remained relatively attractive in July and August, sustaining demand from investors seeking higher returns on government securities.

At the July 8 auction, the stop rate on the 364-day bill reached a quarterly high of 17.70 percent. It subsequently declined to 17.59 percent on August 12 and 17.15 percent on August 26.

The 91-day and 182-day bills accounted for the remaining allotments during the eight auctions.

T-bill yields fall in September

Treasury bill yields began falling more sharply in September, with the CBN lowering stop rates across the three tenors.

The 364-day stop rate declined to 16.84 percent on September 2 and 16.62 percent on September 9 before falling further to 15.89 percent at the September 23 auction.

The movement represents a 181-basis-point decline from the 17.70 percent quarterly peak recorded on July 8.

At the September 23 auction, investors submitted N4.23tn in bids against the N600bn offered, indicating that demand remained strong despite the lower yields.

The 364-day instrument attracted N4.09tn of the subscriptions, more than 10 times the N400bn offered for the tenor. The CBN ultimately allotted N447.07bn at a 15.89 percent stop rate.

The strong demand alongside declining stop rates suggests that investors remained willing to hold government securities even as returns moderated.

The Q3 pattern therefore points to two developments in the Treasury bill market: the government raised significantly more than its initial issuance plan, while the cost of raising funds through the one-year instrument fell steadily during the quarter.

The direction of Treasury bill yields in the fourth quarter will provide an important indication of whether the decline seen in September marks a sustained shift in short-term government borrowing costs.