Lagos, Nigeria – The Central Bank of Nigeria has announced plans to auction N1.05 trillion (approximately $671 million) in Treasury Bills on March 5, 2026, offering 91-day, 182-day, and 364-day instruments amid tight liquidity conditions. The issuance marks the first Nigerian Treasury Bills auction following the CBN’s recent rate cut, setting the tone for yield direction in the fixed income market.
Okay News reports that according to an official tender notice, the Federal Government will offer N100 billion in 91-day bills, N150 billion in 182-day bills, and N800 billion in 364-day bills. The auction will use the Dutch auction system, allowing market forces to determine interest rates based on investor demand. Bids must be submitted electronically through the CBN’s Scripless Securities Settlement System between 8 a.m. and 11 a.m. on March 4.
By adopting the Dutch auction system, the CBN allows investors to specify both the amount they wish to purchase and the yield they are willing to accept. The bank allocates bills starting from the lowest yield upward until the total offering is fully subscribed, with successful bidders receiving the yields they specified. The S4 Web Interface enables electronic bid submission, reducing errors and ensuring transparency in the auction process.
This auction is the first NTB sale following the CBN’s major rate cut at the conclusion of its latest Monetary Policy Committee meeting. The deployment of the Dutch auction system signals a shift toward market-driven pricing, enhancing monetary policy transmission through clearer price discovery. The combination of the Dutch auction framework and the S4 system promotes competitive pricing and ensures that stop rates reflect actual market demand.
Investors seeking to participate are required to submit bids electronically, with each bid in multiples of N1,000 subject to a minimum subscription of N50,001,000. Dealers may submit multiple bids on their own behalf, for non-money market dealers, or for interested members of the investing public. Successful bidders will receive allotment letters on Thursday, March 5, with payment due no later than 11 a.m. through accounts held with the apex bank.
The CBN added that it reserves the right to reject any bid and may vary the total amount on offer depending on prevailing market conditions. This development aligns with the apex bank’s broader financial market reforms aimed at allowing demand and supply dynamics to determine pricing outcomes. The transition to a dealer-neutral system is designed to eliminate structural inefficiencies in the government’s securities market.
With N1.05 trillion on offer, investors will closely watch whether yields moderate, hold steady, or rise in response to demand patterns. The outcome of the March 5 auction is expected to provide early signals on fixed income market sentiment following the CBN’s recent policy easing. This Treasury Bills auction will provide valuable insight into how the rate cut influences investor expectations and demand for government securities.
 in Treasury Bills on March 5, 2026, offering 91-day, 182-day, and 364-day instruments amid tight liquidity conditions. The issuance marks the first Nigerian Treasury Bills auction following the CBN's recent rate cut, setting the tone for yield direction in the fixed income market.){kind=link}