Abuja, Nigeria – The Central Bank of Nigeria cut stop rates on its March 25, 2026 Treasury Bills auction, trimming yields on the 182 day and 364 day tenors to 16.42 per cent and 16.43 per cent respectively, as banking system liquidity above 8 trillion naira kept demand for government paper elevated.
Okay News reports that auction data seen by Nairametrics show the 91 day bill was left unchanged at 15.95 per cent, while the one year instrument dominated interest with 2.73 trillion naira in bids against a 200 billion naira offer, leading the Central Bank of Nigeria to allot 394.88 billion naira on that tenor.
The 91 day bill drew about 98.71 billion naira in subscriptions versus 100 billion naira on offer, with 97.75 billion naira allotted, while the 182 day paper attracted just 66.58 billion naira against a 100 billion naira offer, resulting in an allotment of 28.04 billion naira, underlining investors’ preference for either very short or relatively long maturities.
Across all three tenors, total bids far exceeded the combined 400 billion naira on offer, with demand concentrated at the long end of the curve, where bid rates on the 364 day bill ranged roughly from 15.95 per cent to 19.50 per cent, suggesting that many institutional investors are locking in yields ahead of further easing in monetary conditions.
The softer stop rates follow recent cuts to the Monetary Policy Rate and come against a backdrop of a liquidity glut, with deposits at the Central Bank of Nigeria’s Standing Deposit Facility climbing above 8 trillion naira in March as banks park surplus cash at an attractive overnight rate.
Earlier March auctions had already highlighted this dynamic: on March 11, the Central Bank of Nigeria received 2.78 trillion naira in bids against 850 billion naira offered and still allotted 933.92 billion naira, while on March 18 subscriptions reached about 3.06 trillion naira for a 1.05 trillion naira offer, with most demand again focused on the 364 day bill.
Analysts say the March 25 outcome confirms that strong liquidity is pushing investors to accept lower rates on longer dated Treasury Bills, signalling a gradual shift toward lower yields in Nigeria’s fixed income market as policy normalisation and excess cash in the banking system continue to shape pricing.
