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Tag: Treasury Bills

  • Treasury Bills sales peaked at N15.2tr in 2025

    Treasury Bills sales peaked at N15.2tr in 2025

    The sum of N15.2 trillion was realised by Central Bank of Nigeria from the bi-weekly sales of Treasury Bills via primary market auctions conducted in 2025 as part of an effort to support government short-term borrowing and liquidity management.

    Out of this amount, new borrowing was N1.50 trillion, according to Meristem Securities Limited, which said that the remaining amount was used to refinance the amount of Treasury bills that matured in the same year.

    The amount is the lowest in three years. In 2024, the Apex Bank net inflow from Treasury bills sales was N5.85 trillion after expired bills were refinance from N13.4 trillion total allotment.

    The average yield on Nigerian Treasury bills declined slightly to 17.72% as investors boosted their holding ahead of fresh government borrowing in 2026.

    The yield contraction was as a result of investors positioning in the short and belly of the curve in the secondary market after showing interest in long tenor at the main auction.

    The market traded mixed for the week with balanced demand. At the start of the week, trading was largely flat across the curve, with most maturities closing unchanged as investors traded cautiously resulting in minimal repricing across short- and mid-tenor bills.

    Read Also: Fed Govt to pay CBN’s N20tr overdraft with treasury bills

    By Tuesday, trading remained subdued at the short end, with rates across short- and mid-tenor bills closing flat amid cautious positioning.

    In contrast, long-dated bills attracted demand, led by the 03-Dec-26 which declined by 69bps to 16.20%, alongside yield compression on the 17-Dec-26 and 10-Dec-26 papers.

    Toward the close of the week, trading remained subdued, with yields across most maturities holding steady and only marginal adjustments observed at the long end, as investors maintained cautious, light positioning amid muted market activity.

    Overall, the market ended the period with a mild downward bias, as the average benchmark yield fell 4bps. Market is anticipated to trade in line with the available system liquidity.

  • Investors opt for long-tenored T-Bills

    Investors opt for long-tenored T-Bills

    Domestic and foreign investors last week rushed N800 billion Treasury Bills (T-Bills) offered by the Central Bank of Nigeria (CBN) to the investing public.

    At the primary market auction for treasury bills, the CBN offered N800 billion worth of instruments across three tenors-91-day (N100 billion), 182-day (N200 billion), and 364-day (N500 billion).

    Analysts at Afrinvest said that investors’ demand at the auction dropped as the bid-to-offer ratio printed at one times one, as against two times three recorded in the previous week’s offer.

    “The 364-day instrument received the most buying interest with a bid-to -cover ratio of 1.9 times, while the ratio for the 91 and 182-day bills were one times zero and 1.1 times, respectively. Compared to the previous auction, the stop rate on the 91, 182, 364-days instruments rose 100 basis points (bps), 70 basis points, and 150 basis points respectively to 18 per cent, 18.5 per cent, and 19.9 per cent,” the report said.

    In the secondary market, the bearish momentum from previous week was halted as average yield across all tenors dipped 40bps w/w to 19.4 per cent.

    “The mid- and long-dated papers recorded price uptick as average yield decreased 16bps and 9bps sequentially to close at 19 per cent and 21.6 per cent while the short-dated instrument witnessed sell pressure as average yield increased 13 basis points to close at 17.6 per cent. In the coming week, we expect market sentiment to be influenced by T-bills maturity (N1.2 trillion) and the introduction of new primary market instruments worth N700 billion,” the report said.

    The Bonds Market recorded bearish sentiment in the local space ahead of upcoming auctions. According to the Debt Management Office (DMO), there was a bond auction on March 24, to raise N300 billion for the Federal Government, as part of a broader initiative to secure up to N1.8 trillion in first quarter of this year.

    Read Also: FAAC disburses N1.678tr to FG, States, councils

    “This effort aims to bridge the fiscal deficit while providing attractive investment opportunities for both institutional and retail investors. The auction includes two offerings: a five-year savings bond yielding 19.3 per cent per annum, maturing in April 2029, and a nine-year savings bond yielding 19.9 per cent per annum, maturing in May 2033,” the report said.

    Meanwhile, in the domestic secondary bonds market, the bearish sentiment lingered as selloffs dominated trading activities culminating in a 29 basis points increase in the average yield to 18.6 per cent. The bearish sentiment was evident across all tenors as the mid-term instruments (average yield rose by 40 basis points) recorded the most sell pressure. Likewise, average yield on the short and long-term instruments advanced 39 basis points and four basis points week-on-week, respectively

    In the coming week, we anticipate a shift in domestic bond space as the DMO’s plans of raising N300 0bn through the upcoming FGN Bond auction will likely skew sentiments in the opposite direction.

    Analysts from Cordros Securities said  the FGN bond secondary market experienced bearish sentiments, with investors exiting positions on the March-2025 bond ahead of its maturity on March 23. Accordingly, the average yield increased by 28bps to 18.80 per cent.

     “Next week, we believe the outcome of this month’s FGN bond auction on Monday (24 April) will shape the direction of yields in the secondary market. At the auction, the DMO is set to offer instruments worth NGN300.00 billion through re-openings of the April-2029 and May-2033 bonds. Over the medium term, we still expect moderation in bond yields to be influenced by the anticipated dovish monetary policy stance and demand and supply dynamics,” the report said.

  • MPC directs CBN to restrict banks access to bonds, treasury bills

    BANKS’ access to government securities is to be restricted, Central Bank of Nigeria (CBN) Governor Godwin Emefiele said yesterday.

    The Monetary Policy Committee (MPC), said the CBN boss, directed the apex bank to initiate policies or regulations that will facilitate the restriction.

    Emefiele spoke at the end of the MPC meeting in Abuja.

    He said: “In view of the abundant opportunities available to banks for unfettered access to government securities, which tends to crowd out private sector lending, the Committee called on the Bank to provide a mechanism for limiting DMBs access to government securities so as to redirect banks’ lending focus to the private sector, noting that this would spur the much needed growth in the economy.  It called on the government to use all machinery at its disposal to increase tax revenue to enable the government fund its budget adequately.”

    Emefiele added: “It is important and expedient that the MPC gives this directive to the management of the Central Bank because this country badly needs growth. For us to achieve growth, those whose primary responsibilities it is to provide credit, who act as intermediaries in providing credit and are accorded as the catalysts to the economy, must be seen to perform that responsibility.”

    Read also: Heritage Bank promotes CBN’s initiative

    The CBN Governor lamented that Deposit Money Banks (DMBs) “would rather than performing that responsibility to the private sector that are the engine of growth of an economy, they would be directing their liquidity to other sectors of the economy”. “This is what the MPC frowns at and, therefore, giving the management of Central Bank the power to limit the DMBs’ propensity or their appetite for just going for government securities rather than directing credit to private sector of the economy.”

    Emefiele noted that “the truth is that according to our own regulations, there is a particular minimum percentage of treasury bills or government securities that the bank must invest in order to remain liquid. But again, we have observed – and unfortunately too and increasingly so  – that the banks, rather than focusing on granting credit to the private sector, they tend to direct their focus to mainly in buying government securities.”

    The CBN management, Emefiele said, “would certainly take this up and will think of how to do that.”

    On Non-Performing Loans (NPL), the CBN governor said banks had always expressed some resistance to increasing credit ratio to the private sector, given the bad experience surrounding NPL.

    However, the MPC, he announced, has also directed the management of the CBN to “think about administrative, legal and regulatory framework to be put in place to ensure that some of the credit risks that are associated with granting loans to the private sector that ultimately result in NPLs should be mitigated such that when banks decide to begin to lend to the private sector or increasingly that the probability that NPLs would rise should be moderated.”

    The MPC welcomed the improvement in financial soundness indicators, but noted that although the NPLs ratio moderated, it remained above the prudential benchmark. Consequently, the committee considered and recommended to management a proposal to develop a comprehensive administrative legal and regulatory framework to speed up the recovery of delinquent loan facilities of the banking system by taking part in structured engagement with relevant stakeholders and authorities to mitigate credit risk and ultimately open up the credit delivery space in the Nigeria economy.

    Also at the briefing, the CBN stated that the MPC resolved to retain the Monetary Policy Rate (MPR) at 13.50 per cent; retain the asymmetric corridor of +200/-500 basis points around the MPR; retain the Cash Reserve Ratio (CRR) at 22.5 per cent; and retain the Liquidity Ratio at 30 per cent.

    He said that those who voted for a retention of rates at its present level believe the decision “was essential for better understanding of the momentum of growth before determining any possible modifications. They also felt that retaining the current policy stance provides an avenue for evaluating the impact of the apex bank’s intervention policies to support lending to the priority sectors of the economy”.

  • Settlement banks to fund N15b clearing collateral with T-Bills

    The Central Bank of Nigeria (CBN) has directed that settlement banks provide clearing collateral of not less than N15 billion worth of treasury bills for them to perform settlement roles in the industry.

    The directive was contained in the CBN’s Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for Fiscal Years 2018/2019 released by the regulator.

    The CBN said it would continue to categorise banks into settlement and non-settlement banks for the purpose of clearing and settlement. It said settlement banks participate directly in the clearing houses and receive their net clearing position in their settlement account with the CBN, while non-settlement banks receive their net clearing position through the settlement account of their settlement bank.

    “Any bank applying for direct participation as a settlement bank shall be required to possess the capacity to provide the required clearing collateral of N15 billion, subject to periodic review. It shall have the ability to offer agency facilities to other banks and to clear and settle on their behalf. It shall also have adequate branch network, in all the CBN locations,” the CBN said.

    “Banks that meet the specified criteria shall continue to be designated as “Settlement Banks.” Consequently, non-settlement banks, called “Clearing Banks” shall continue to carry out clearing operations through the settlement banks under agency arrangement. The terms of agency arrangements shall be mutually agreed between the Settlement Banks and the Clearing Banks,” the CBN said.

    The CBN said it would continue to adopt the risk-based supervision (RBS) approach in the supervision of institutions under its regulatory purview. “The objective of the RBS approach is to provide an effective process to assess the safety and soundness of banks and other financial institutions. This is achieved by evaluating their risk profile, financial condition, risk management practices and compliance with applicable laws and regulations,” it said.

    It enjoined banks to pursue profitability in their business models through efficient operations, adding that they should charge competitive rather than excessive rates of interest in the course of their transactions. The lenders are also to disclose their prime and maximum lending rates as fixed spreads over the Monetary Policy Rate.

     

  • Pension Administrators invest N1.49 tr in Treasury Bills

    Tension Fund Administrators (PFAs) have invested N1.49 trillion in Treasury Bills.

    The monthly National Pension Commission (PenCom) report released yesterday in Abuja by its spokesman, Peter Aghahowa, explained how the fund had been invested.

    The commission said the PFAs invested N4.22 trillion in Federal Government’s bonds; Federal Mortgage Bank of Nigeria (FMBN) got N10.91 billion; Sukuk bonds, N53.15 billion; and green bonds, N6.96 billion.

    “State government securities took N154.43 billion. Corporate bonds got N400.45 billion with corporate infrastructure bonds amounting to N7.33 billion, even as banks had N849.09 billion.

    “Others include commercial papers, N116.76 billion and real estate properties, N226.64 billion and supranational bonds, N6.67 billion.

    “Open and close end funds, N12.18 billion; mutual funds, N21.29 billion; private equity fund N38.57 billion; infrastructure fund, N16.07 billion; other assets N24.56 billion and Reits, N9.10 billion,” the commission said.

    According to the commission, the total sum invested in Federal Government’s securities by PFAs stood at N5.78trn out of N8.33 trillion pension assets as at August.

    “The investment represents 69.30 per cent of N8.33 trillion pension assets,” the commission said.

    The commission, in the monthly report, also reclassified the pension assets according to the new structures, namely; 1, 11, 111 and 1V multi-fund structures.

    “Fund I has N4.55 billion; Fund II, N3.69 trillion; Fund III N1.96 trillion and Fund IV N619.59 billion.

    “It noted that Closed Pension Fund Administrators Fund (CPFAs) is N1.08 trillion and Existing Schemes (ES) N957.50 billion,” it said.

  • CBN raises N176b in treasury bills on lower yields

    The Central Bank of Nigeria (CBN) has raised N176 billion ($576 million) worth of treasury bills at an auction held yesterday, traders said.

    The apex bank offered N6 billion of three-month paper, N30 billion of six-month bills and N140 billion of one-year notes.

    The bank issues treasury bills twice a month to help the government to finance its budget deficit, curb money supply growth and provide an avenue for lenders to manage liquidity.

    Total demand for the notes stood at N229.9 billion as investors were demanding as high as 20 per cent yields for the one-year paper, which sold for 13.7 per cent. It sold the one-year paper at 14.3 per cent in January.

    The bank auctioned the three-month bill at 11.95 per cent from 12.55 per cent last month and the six-month note at 13.65 per cent from 13.92 per cent.

    Reuters report said the government has been working to lower its borrowing costs, particularly as inflation fell for the 12th time in a row yesterday. The government also plans to refinance $2.5 billion worth of treasury bills from the proceeds of a planned Eurobond sale this first quarter.

     

  • CBN raises N162b via Treasury Bills auction

    CBN raises N162b via Treasury Bills auction

    The Central Bank of Nigeria (CBN) has raised N161.54 billion ($513.64 million) through Treasury Bills (T-Bills). The apex bank received subscriptions for more than twice the amount on offer, traders said yesterday.

    The CBN sold N115.85 billion of one-year debt at a rate of 14.30 per cent. It auctioned N11.77 billion and N33.93 billion respectively in three- and six-month maturities at 12.54 per cent and 13.92 per cent. Total subscription stood at N388.50 billion.

    The Federal Government had last month, repaid N198 billion worth of T-Bills using part proceeds of a $3 billion Eurobond issue, instead of rolling over the debt to lower its borrowing costs. It plans to repay more bills this year.

    Investors bid as high as 18.6 per cent for the one-year paper. However, the government has been offering debt at lower yields to track declining inflation, which fell for the 10th month in November to 15.90 per cent.

    The T-bills’ maturities range between three months and a year. T-bills are marketable short-term money market securities that serve the purpose of raising money for the government and also help in monetary policy management of the CBN.

    The CBN issues T-Bills to raise cash to fund the government budget deficit help manage banking system liquidity and curb rising inflation.

    The main investors in government securities are mainly pension funds and commercial banks which control more than 60 per cent of the market, followed by insurance funds and a few micro-finance institutions.

    Yields on fixed income securities have been declining in recent months with the CBN mopping up naira liquidity as it tries to lure back foreign investors who sold naira assets following the plunge in the price of oil.

  • CBN plans N130.37b treasury bills auction

    CBN plans N130.37b treasury bills auction

    The Central Bank of Nigeria (CBN) will sell N130.37 billion worth of treasury bills at an auction planned for October 4.

    The bank will offer N28.69 billion in three-month paper, N33.49 billion in six-month bill and N68.18 billion in one-year note. Results of the auction will be announced on the same day.

    The central bank issues treasury bills twice a month to help the government to finance its budget deficit, curb money supply growth and provide an avenue for lenders to manage liquidity.

    The T-bills’ maturities range between three months and a year and would be raised today, according to the CBN. T-bills are marketable short-term money market securities that serve the purpose of raising money for the government and also help in monetary policy management of the CBN.

    The CBN issues treasury bills to raise cash to fund the government budget deficit, help manage banking system liquidity and curb rising inflation.

    The CBN had on August 3, raised N245.18 billion ($773.44 million) worth of T-bills to settle short-term obligations. The CBN issued N45.18 billion in three-month debt, N80 billion of six-month paper and N120 billion, of one year bills in a Dutch auction, traders said. Indicative rates for the auction are 16 per cent for three-months, 18 per cent for six-months and 18.5 per cent for one-year bills. The auction’s results will be published the day after the sale.

    The main investors in government securities are mainly pension funds and commercial banks which control more than 60 per cent of the market, followed by insurance funds and a few micro-finance institutions.

    Yields on fixed income securities have been rising in recent months with the CBN mopping up naira liquidity to try to lure back foreign investors who sold naira assets following the plunge in the price of oil, Nigeria’s economic mainstay

  • CBN to raise N177b via Treasury bills auction

    CBN to raise N177b via Treasury bills auction

    The Central Bank of Nigeria (CBN) is planning to raise N177 billion ($562 million) of short-dated treasury bills at an auction on July 5, the regulator said yesterday.

    The bank said in a public notice it planned to sell N35 billion of three-month debt, N22 billion of six-month bills and N120 billion of one-year notes at the auction, using a Dutch auction system.

    The CBN issues treasury bills twice a month to finance the budget deficit, help manage commercial lenders’ liquidity and curb rising inflation.

    The West African country expects its budget deficit to widen to N2.36 trillion this year as it tries to spend its way out of a recession, with more than half the deficit to be funded through local borrowing.

    The apex bank has in the last two months, issued short-dated treasury bills to mop-up what it perceived as excess liquidity and curb speculation on the local currency.

    Nigeria expects to face a budget deficit of about N2.21 trillion for the year as it tries to wriggle its way out of recession. It expects to raise money to cover more than half the deficit through domestic borrowing.

    The bills’ maturities range between three months and a year and would be raised today, according to the CBN. They are marketable short-term money market securities that serve the purpose of raising money for the government and also help in monetary policy management of the CBN.

    The CBN issues treasury bills to raise cash to fund the government budget deficit, helps manage banking system liquidity and curbs rising inflation.

    The CBN on August 3 last year, raised N245.18 billion ($773.44 million) worth of T-bills to settle short-term obligations. It also issued N45.18 billion in three-month debt, N80 billion of six-month paper and N120 billion of one year bills in a Dutch auction, Treasury Bills traders said.

  • CBN to sell N1.24tr Treasury Bills in three months

    CBN to sell N1.24tr Treasury Bills in three months

    The Central Bank of Nigeria (CBN) plans to sell N1.24 trillion ($4.1 billion) worth of treasury bills (T-bills) from June 15 to August 31, the regulator’s debt calendar for the third quarter has shown.

    The bank aims to auction N226.64 billion in 91-day bills, N311.32 billion in 182-day and N698.64 billion in 364-day debt.

    The ape bank sells treasury bills twice a month to help fund the government’s budget deficit and support commercial banks in managing liquidity.

    Nigeria, grappling with its first recession in 25 years after a slide in global oil prices and due to the impact of attacks on energy facilities in the Niger Delta, has set out a budget plan worth N7.44 trillion for this year.

    Nigeria expects to face a budget deficit of about N2.21 trillion for the year as it tries to wriggle its way out of recession. It expects to raise money to cover more than half the deficit through domestic borrowing.

    The bills’ maturities range between three months and a year and would be raised today, according to the CBN. They are marketable short-term money market securities that serve the purpose of raising money for the government and also help in monetary policy management of the CBN.

    The CBN issues treasury bills to raise cash to fund the government budget deficit, helps manage banking system liquidity and curbs rising inflation.

    The CBN on August 3 last year, raised N245.18 billion ($773.44 million) worth of T-bills to settle short-term obligations. It also issued N45.18 billion in three-month debt, N80 billion of six-month paper and N120 billion of one year bills in a Dutch auction, Treasury Bills traders said.

    Indicative rates for the auction are 16 per cent for three-months, 18 per cent for six-months and 18.5 per cent for one-year bills. The auction’s results will be published the day after the sale.

    The main investors in government securities are mainly pension funds and commercial banks, which control more than 60 per cent of the market, followed by insurance funds and a few micro-finance institutions.

    Yields on fixed income securities have been rising in recent months with the CBN mopping up naira liquidity to try to lure back foreign investors, who sold naira assets following the plunge in the price of oil, Nigeria’s economic mainstay.