The Central Bank of Nigeria (CBN), on behalf of the Debt Management Office (DMO), will offer N700 billion worth of Nigerian Treasury Bills (NTBs) at its third and final primary market auction for July on Wednesday, July 29, 2026, as authorities continue an aggressive liquidity management strategy aimed at containing inflation and supporting macroeconomic stability.
According to the CBN’s invitation to tender, the auction will comprise N100 billion in 91-day bills, N100 billion in 182-day bills, and N500 billion in 364-day bills. The securities will be sold through the Dutch auction system, under which investors bid both the amount they wish to purchase and the yield they are prepared to accept.
The sale completes the CBN’s planned N2 trillion Treasury Bills issuance for July, making it the largest monthly NTB programme so far this year. Earlier auctions saw N700 billion offered on July 8 and N600 billion on July 15, with the July 29 sale marking the final tranche.
The scale of the programme significantly exceeds the N647.79 billion in Treasury Bills scheduled to mature during the month, resulting in a projected net liquidity withdrawal of about N1.35 trillion from the banking system. Although N378.43 billion in bills matured on July 22, temporarily injecting cash into the financial system, the end-of-month auction is expected to absorb much of that liquidity.
The July programme also marks the start of the CBN’s expanded third-quarter 2026 Treasury Bills issuance plan, which targets N5.8 trillion in gross issuance between July and September. With maturities of N2.64 trillion during the same period, the programme implies approximately N3.16 trillion in net domestic borrowing, underscoring the government’s continued reliance on the local debt market to finance funding needs and manage liquidity.
Investor demand has remained robust despite rising issuance. At the July 8 auction, subscriptions reached N2.03 trillion against an offer of N700 billion, representing a 2.9-times oversubscription. The CBN eventually allotted N1.06 trillion, well above the initial offer.
The 364-day Treasury Bill remained the preferred instrument, attracting N1.86 trillion in bids against N500 billion offered, reflecting investors’ appetite to lock in relatively attractive yields for longer tenors.
Yield trends also point to sustained demand. The stop rate on the one-year bill rose to 17.70% from 17.34% at the June 17 auction, while the 91-day bill edged up to 16.30% and the 182-day bill held steady at 16.50%. With Nigeria’s headline inflation at 15.93% in May 2026, the one-year Treasury Bill continued to offer investors a positive real return.
Market participants will closely watch the outcome of Wednesday’s auction for signals on investor sentiment and the future direction of short-term interest rates. Analysts say another heavily oversubscribed sale could reinforce confidence in government securities, while sustained liquidity tightening is expected to keep money market rates elevated and influence banks’ lending decisions in the coming months.
