The Central Bank of Nigeria (CBN) has slashed interest rates across two key tenors at its March 25, 2026 Treasury Bills (NTB) auction.
Data from the auction result showed that stop rates on the 182-day and 364-day instruments declined by 20 basis points to 16.42 per cent and 16.43 per cent respectively, while the 91-day bill remained unchanged at 15.95 per cent.
Details of the auction results shows a divergence in investor appetite across maturities, with the 364-day bill dominating overall subscriptions.
The 364-day instrument attracted N2.73 trillion in bids against a N200 billion offer, with the CBN allotting N394.88 billion.
The 91-day bill recorded near-full subscription at N98.71 billion versus a N100 billion offer, with N97.75 trillion allotted while the 182-day bill lagged, drawing N66.58 billion in subscriptions against N100 billion offered, with only N28.04 billion allotted.
The data shows investors’ preference for short-term instruments for liquidity or extended duration to lock in yields.
Total subscriptions far exceeded the combined N400 billion offered across tenors, driven largely by demand for the 364-day bill.
The CBN responded by increasing allotment on the long tenor, reflecting stronger investor demand at that end of the curve.
Bid rates showed wide dispersion, particularly on the 364-day instrument, ranging from 15.95 per cent to 19.50 per cent.
Analysts note that institutional investors are increasingly front-loading positions in long-dated securities in anticipation of further rate moderation.
The decline in longer-tenor yields suggests that rates may continue to ease if current liquidity conditions persist.
The latest auction result aligns with recent trends where demand has consistently outpaced supply and concentrated on longer maturities.
At the March 18, 2026, auction, the CBN allotted N691.86 billion out of N1.05 trillion offered despite N3.06 trillion in subscriptions.
On March 11, 2026, subscriptions reached N2.78 trillion, more than double the N850 billion on offer.
The March 4 auction recorded N2.34 trillion in subscriptions, with N1.01 trillion allotted.
In February, demand surged to N4.28 trillion, with a strong preference for the 364-day instrument.
