The Debt Management Office (DMO), through the Central Bank of Nigeria (CBN), allotted just ₦71.16 billion at Wednesday’s Treasury bills auction, leaving about 96.3% of the ₦1.91 trillion in investor subscriptions unfilled despite strong demand for government securities.
The October 28, 2026 auction offered ₦800 billion across the 91-day, 182-day and 364-day instruments. However, the government raised only 8.9% of its advertised offer, while stop rates declined across all three maturities.
According to auction data compiled by Afronomics from Central Bank of Nigeria (CBN) publications, total subscriptions reached approximately ₦1.908 trillion, about 2.38 times the amount offered. The DMO accepted ₦71.16 billion, leaving approximately ₦1.837 trillion in subscriptions unallotted.
Demand was heavily concentrated in the 364-day Treasury bill, which attracted ₦1.836 trillion against an offer of ₦600 billion. Despite accounting for more than 96 per cent of total subscriptions, the instrument received an allotment of only ₦38.38 billion.
The 91-day bill attracted ₦51.56 billion in bids against an offer of ₦100 billion, with ₦22.33 billion allotted. The 182-day instrument received ₦20.27 billion in subscriptions against the same ₦100 billion offer, while the DMO accepted ₦10.45 billion.
The auction also recorded lower stop rates across all three maturities. Afronomics’ auction records show that the 91-day rate fell by 10 basis points to 15.40% from 15.50%, while the 182-day rate declined by one basis point to 15.79% from 15.80%.
The 364-day stop rate dropped by five basis points to 15.80% from 15.85% at the October 7 auction. The instrument was not offered at the October 14 auction, when the 91-day and 182-day rates remained at 15.50% and 15.80%, respectively.
The latest auction follows the CBN’s September 22 decision to reduce the Monetary Policy Rate by 350 basis points, from 26.5% to 23%. The adjustment marked a significant change in the benchmark policy rate after an extended period of elevated borrowing costs.
However, the latest Treasury bills results show that a lower policy rate does not automatically translate into higher government borrowing through the primary market. Although investors submitted bids worth more than twice the advertised offer, the amount accepted remained substantially below the government’s target.
The results also highlight the concentration of investor demand in the one-year instrument, even as the DMO accepted only a small fraction of the subscriptions received for that tenor.
The lower stop rates indicate that the government secured Treasury bills funding at reduced auction rates across all three maturities. However, the published results do not establish why the DMO limited allotments or whether its decision was intended specifically to push borrowing costs lower.
Subsequent auctions will provide further evidence of whether the declining stop-rate trend continues and whether the government increases allotments to meet its domestic borrowing requirements.
