The Central Bank of Nigeria (CBN) has recorded its strongest investor demand since December 2024, with subscriptions hitting ₦3.44 trillion at its Nigerian Treasury Bills (NT-Bills) primary market auction held on Wednesday.
At the auction, the apex bank offered ₦1.15 trillion across three maturities: ₦150 billion for the 91-day tenor, ₦200 billion for the 182-day, and ₦800 billion for the 364-day bills. Investor demand, however, far outstripped supply, particularly for the one-year instrument.
The 364-day NT-Bill attracted demand nearly four times the amount on offer, underscoring strong appetite for high-yield government securities. Despite the oversubscription, the CBN sold a total of ₦1.06 trillion across all tenors.
The last time demand reached similar levels was on December 4, 2024, when subscriptions exceeded ₦5 trillion amid elevated inflation and high interest rates.
Yields moved higher on the shorter tenors, while easing slightly on the 364-day bill, which nevertheless continues to offer robust returns. The 91-day yield rose to 16.50 per cent, while the 182-day bill climbed to 18.17 per cent, up from 17.99 per cent at the previous auction. The 364-day yield dipped marginally to 22.49 per cent, from 22.65 per cent.
Analysts attribute the sustained high yields to a mix of aggressive government borrowing and the CBN’s tight monetary policy stance.
Nigeria’s 2026 fiscal year is projected to record a deficit of ₦23.85 trillion, prompting the Federal Government to rely heavily on domestic borrowing amid high costs in international capital markets. According to issuance plans, the government intends to borrow ₦7.55 trillion in the first quarter of 2026 alone, increasing the supply of debt instruments and pushing yields higher.
Beyond fiscal pressures, the CBN is deliberately keeping rates elevated to curb inflation, stabilise the naira, and attract foreign portfolio investments (FPI). By maintaining one-year yields above 22 per cent, the apex bank aims to mop up excess liquidity and draw foreign exchange inflows to support the local currency.
The development comes against the backdrop of renewed efforts by Nigerian officials to court global investors. Speaking at Nigeria House during the World Economic Forum in Davos, Director-General of the World Trade Organisation, Dr Ngozi Okonjo-Iweala, urged the Federal Government to strategically target global investors and supply-chain relocations to reduce import dependence, deepen manufacturing, and create jobs.
Similarly, the Minister of Foreign Affairs, Yusuf Tuggar, called on international investors to look beyond Nigeria’s security challenges, describing reported geopolitical risks as exaggerated.
According to him, insecurity incidents across the country are isolated and largely linked to regional instability in the Sahel.
“We are urging investors to treat us the same way they treat other countries. The fact that there are isolated incidents in some parts of the country does not mean the entire country is unsafe,” Tuggar said.