Nigeria’s CBN treasury bills auction attracts N3.1trn

• Published On: 06 February 2025 at 20:10

The Central Bank of Nigeria has announced the results of its Treasury Bills auction, which took place on February 5, 2025, and attracted over N3.1 trillion in subscriptions.

The 91-day bills were offered for N50 billion, subscribed for N42.37 billion, and allotted N31.94 billion at an 18% stop rate. In the 182-day bills, N120 billion were offered, N19.52 billion subscribed, and N18.69 billion allotted at an 18.5% stop rate, while in the 364-day bills, N500 billion were offered, N3.16 trillion subscribed, and N619.36 billion allotted at 20% stop rate.

Despite concerns about inflation and tight monetary conditions, investors continue to favor longer-term instruments. The high stop rates indicate that the government is willing to offer higher returns to attract investors. This could affect future bond yields and liquidity in Nigeria's fixed-income market.

Furthermore, the CBN's issuance of N2.2 trillion in maturing Treasury Bills in Q4 2024 demonstrates ongoing efforts to stabilize the financial market and maintain economic stability.