The Central Bank of Nigeria (CBN) is targeting to raise N1.05 trillion at a Treasury Bills (NTBs) auction today, March 18.
If the amount is raised, it will bring total short-term borrowing by the federal government to nearly N3 trillion within two weeks.
In an official invitation to tender issued by the CBN on behalf of the Debt Management Office (DMO), the CBN explained that the auction will follow the Dutch auction system, allowing yields to be determined by investor demand and prevailing liquidity conditions.
The auction underscores the government’s continued reliance on domestic debt markets amid fiscal pressures.
According to the tender notice, the Federal Government will offer N1.05 trillion worth of Treasury Bills across three maturities, with settlement expected the following day.
A total of N100 billion will be issued in 91-day bills, while N150 billion will be offered in 182-day bills, and N800 billion will be allocated to 364-day instruments, reflecting stronger demand for longer-tenor securities.
Primary market dealers are required to submit bids electronically via the CBN’s Scripless Securities Settlement System (S4) between 8:00 a.m. and 11:00 a.m., with bids set in multiples of N1,000 and a minimum subscription of N50.001 million.
Authorised Money Market Dealers can submit multiple bids for themselves and clients, while results will be announced the same day, with successful bidders receiving allotment letters on March 19 and payments due before 11:00 a.m. on settlement day.
The Dutch auction system to be used allows yields to be determined by investor demand and prevailing liquidity conditions, reinforcing the market-driven nature of the issuance.
