CBN Raises T-bill Rates to 17.44% as Investors Stake N396.4bn

Samuel Mobolaji

The Central Bank of Nigeria (CBN) on Wednesday selectively increased spot rates on Nigerian Treasury bills (NTBs), with the one-year paper climbing to 17.44 per cent at the latest primary market auction.

The apex bank offered N230 billion worth of NTBs across the 91-day, 182-day, and 364-day maturities to replace maturing bills. Investor appetite was strong, with subscriptions totalling N396.42 billion — 1.72 times the amount on offer.

Demand was heavily skewed towards the long-dated 364-day bills, which attracted N356.18 billion against an offer size of N150 billion. By contrast, short-term papers saw weak interest: the 91-day bills recorded just N10.9 billion in bids versus an N50 billion offer, while the 182-day tenor drew N29.35 billion against an N30 billion offer.

At the close of the auction, the CBN allotted N7.70 billion worth of 91-day bills at a stop rate of 15.35 per cent, up from 15.00 per cent at the previous auction. For the 182-day bills, N27.70 billion was allotted at 15.50 per cent, unchanged from the last auction.

The bulk of allotments went to the 364-day tenor, where N268.38 billion was accepted at 17.44 per cent, representing a sharp 94-basis-point increase from the previous rate of 16.50 per cent.

The repricing signals the CBN’s continued bid to manage liquidity while keeping yields attractive to investors amid persistent inflationary pressure.