The Central Bank of Nigeria (CBN) has scooped up N11.43 trillion in short-term government borrowing through treasury bills during the first ten months of 2025, marking a roughly 4 % increase from the N10.99 trillion raised in the same period a year earlier.
This heavy mop-up was propelled by keen investor demand for “risk-free instruments to hedge against double-digit inflation”. To meet this appetite, the CBN offered N9.3 trillion in bills, up from just N6.19 trillion a year earlier. Yet, despite the higher offering, total subscriptions fell to N30.2 trillion, a drop from N33.45 trillion in the first ten months of 2024.
On the rate front, the stop-rate on the 91-day treasury bill tumbled to 15.3% in October 2025, down from 17% in October 2024. Simultaneously, the 182-day rate eased to 15.5% from 17.5% the previous year, and the 364-day rate moved down to 16.14% from 20.65%.
Why such a slide in rates? The CBN has been trimming the yields on short-term debt because strong demand and declining inflation have allowed it to ease the discount it needs to offer. Inflation, for example, fell to 18.02% in September 2025, the lowest since July 2022, thanks in part to foreign exchange stability and seasonal harvests.
By using large auctions of treasury bills and keeping interest rates on the high side, the CBN is managing liquidity in the financial system, trying to damp inflationary pressure and stabilize the currency. Analysts at Cordros Research describe the domestic fixed-income market in 2025 as “characteristically volatile”, driven by tight monetary policy, strong demand for fixed-income securities, and large government financing needs.
Demand for the longer maturities (such as the 364-day bills) remains elevated as investors position for future uncertainty, the higher rates for such maturities suggest caution about longer-term economic risks. Meanwhile, the lower stop-rate on the short-dated bills signals that investors expect conditions to stabilize in the near term.
By absorbing N11.43 trillion in treasury bills and pushing the 91-day yield down to 15.3%, the CBN not only recalibrates borrowing costs for the government but also influences credit-market rates, helping ease corporate financing burdens and signalling a gradual shift toward lower real interest rates in Nigeria’s broader economy.
