Nigeria’s Debt Management Office secured a total of N1.144tn at its first Nigerian Treasury Bills auction of 2026, with stop rates climbing across all maturities as investors continued to show strong appetite for government securities.
The auction, held on January 7, recorded N108.17bn raised for the 91-day bill, N48.23bn for the 182-day tenor, and N987.78bn for the 364-day paper.
The results highlighted an upward repricing of risk-free assets, particularly at the long end of the curve, as investors sought government instruments as a hedge against inflation and policy uncertainty.
Despite the higher rates, demand remained resilient, underlining robust system liquidity and investors’ readiness to lock in elevated yields. The one-year paper once again dominated the auction, accounting for the bulk of funds raised.
The 364-day NTB emerged as the centrepiece, with the DMO raising N987.78bn from an offer of N800bn, while total subscriptions reached approximately N1.38tn. The stop rate for this tenor rose to 18.47 per cent, marking the largest increase across the curve.
Market participants noted that the strong interest reflected a preference for longer-dated instruments offering better yield and protection against reinvestment risk in a high-rate environment.
Shorter tenors experienced more modest demand. The 91-day bill drew subscriptions of N112.26 billion against an offer of N150bn, resulting in an allotment of N108.17bn at a stop rate of 15.80 per cent, up 30 basis points from the previous auction. Meanwhile, the 182-day instrument attracted weaker interest, with N48.23bn raised from subscriptions of N49.91bn and a stop rate of 16.50 per cent, up 55 basis points.
The auction results demonstrate that despite rising rates, investor confidence in Nigerian Treasury Bills remains strong, with the long-end NTB maintaining its appeal as a reliable avenue for yield enhancement and portfolio stability.
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