The Federal Government of Nigeria has disclosed that its Treasury Bills (T-Bills) auction conducted on February 5, 2025, which featured three tenors 91-day, 182-day, and 364-day saw subscriptions surpassing N3.1 trillion.
According to the result of the auction, the strong investor appetite was particularly evident in the one-year instrument.
For the 91-Day Treasury Bills, with offer of N50 billion, subscription was N42.37 billion; Allotment N31.94 billion; Range of bids 17.00% – 22.00%; Stop rate 18%; and Maturity date May 8, 2025
The 182-Day Treasury Bills had offer of N120 billion; subscription N19.52 billion; Allotment N18.69 billion; Range of bids 17.50% – 22.00%; Stop rate 18.5%; and Maturity date of August 7, 2025.
The 364-Day Treasury Bills on the other hand had offer N500 billion; subscription N3.16 trillion; allotment N619.36 billion; range of bids 19.89% – 24.30%; stop rate 20% and maturity date of February 5, 2026
Total subscription was N3,218,032,117,000, while the total allotment was N670,000,000,000.
Investors showed a higher interest in the one-year instrument, with subscriptions exceeding N3.1 trillion against the N500 billion offered, reflecting a preference for higher-yielding, longer-tenured securities amidst current market conditions.
Conversely, the 91-day and 182-day bills witnessed lower-than-offered subscription levels, with the 182-day instrument recording a significant shortfall, attracting just N19.52 billion out of the N120 billion offered.
The stop rates for the three tenors settled at 18%, 18.5%, and 20%, respectively, reflecting the tight liquidity conditions and investor demand for higher returns.
The Central Bank of Nigeria (CBN’s) allocation of N619.36 billion for the 364-day bills shows a strategic effort by the bank to attract liquidity for government financing while balancing market interest rates.
