Lagos, Nigeria – Nigeria’s Treasury bills market recorded N4.28 trillion in subscriptions at the Wednesday, February 18 auction, more than triple the N1.15 trillion offered, reflecting sustained excess liquidity in the fixed-income market.
Okay News reports that auction results from the Central Bank of Nigeria show demand was overwhelmingly concentrated on the 364-day instrument, which attracted N4.07 trillion in subscriptions roughly 95 percent of total demand. Despite the heavy subscription, total allotments came in at N1.91 trillion, indicating selective acceptance by monetary authorities as part of ongoing yield management.
The 364-day bill cleared at a stop rate of 15.90 percent, marginally above the 91-day rate of 15.80 percent but below the 182-day rate of 16.65 percent. This yield configuration suggests investors were willing to accept slightly lower returns on longer maturities in exchange for reinvestment certainty. The 91-day bill was under-subscribed at N112.01 billion against a N150 billion offer, while the 182-day bill recorded N93.75 billion in subscriptions against a N200 billion offer.
This marks another strong outing for government securities in February. A February 4 auction recorded N4.59 trillion in subscriptions against the same N1.15 trillion offer. Investors continue to prefer longer-dated bills amid expectations of medium-term rate moderation. The trend reinforces Treasury bills’ role as a core asset class for institutional portfolios, particularly as money market alternatives offer comparatively lower yields and as investors position for potential monetary policy shifts.
Selective allotments enabled authorities to moderate long-term stop rates despite overwhelming demand. The oversubscription of 3.7 times the offer highlights persistent system liquidity and strong investor appetite for sovereign instruments.
