LAGOS – Investors swamped the Central Bank of Nigeria’s 364-day Treasury Bill with N2.87 trillion ($2.08 billion) in bids at the July 15, 2026, primary market auction, more than seven times the N400 billion offered, according to auction results from the CBN on Wednesday.
The massive oversubscription on the long-term instrument reflects a strategic shift by market participants to lock in double-digit yields amid persistent domestic inflation and aggressive monetary tightening.
Consequently, the apex bank capitalized on the surge to allot N1.06 trillion on the 364-day paper, marginally lowering the stop rate to 17.66% from 17.70% in the preceding auction.
Meanwhile, short-term tenors faced muted demand, with the 91-day and 182-day instruments undersubscribed at N94.96 billion and N68.03 billion, respectively, missing their individual N100 billion targets.
Despite the short-end shortfall, the central bank cleared a total allotment of N1.19 trillion across all tenors, prioritizing aggressive system liquidity mop-up to stabilize the volatile naira.
The auction outcomes highlight a broader commercial banking trend where institutions park record capital in risk-free government securities through standing facilities rather than extending credit to a struggling private sector.
