The Federal Government, through the Central Bank of Nigeria (CBN), has raised N2.51 trillion from investors in its Treasury Bills (T-bills) and Open Market Operations (OMO) auctions conducted on March 5 and March 6, 2025, respectively.
At the T-bill auction, the government initially offered N650 billion but saw overwhelming investor demand, with total subscriptions reaching N1.92 trillion. Most of the bids were directed at the 364-day instrument, which accounted for 94 percent of the total subscriptions.
The 91-day bill had N70 billion on offer and received N62.57 billion in subscriptions, with N61.52 billion allotted at a stop rate of 17 percent. The 182-day bill, with an offer size of N80 billion, attracted N60.05 billion in subscriptions, while N50.95 billion was allotted at a stop rate of 17.75 percent.
The highest demand was recorded for the 364-day bill, where N500 billion was offered, but bids reached N1.80 trillion. The government ultimately allotted N717.97 billion, with the stop rate closing at 17.82 percent, down from 18.50 percent in February. Overall, the government allotted N830.44 billion, exceeding the initial offer, as investors capitalized on the high-yield environment.
The following day, the CBN conducted an OMO auction, initially offering N600 billion but attracting total subscriptions of N1.88 trillion—more than three times the amount on offer. Despite the strong demand, stop rates on longer-tenor bills declined as the apex bank moved to moderate yields.
The stop rate for the 355-day bill dropped to 19.19 percent from 21.32 percent, a decline of 2.13 percentage points, while the 362-day bill cleared at 19.45 percent, down from 21.35 percent, representing a 1.90 percentage point drop.
The CBN offered N300 billion for each maturity but ultimately sold N1.68 trillion in total. The 355-day bill attracted N760.70 billion in subscriptions, with an allotment of N725.70 billion, while the 362-day bill recorded even higher interest, with N1.12 trillion in bids and N951.20 billion allotted.
The decline in stop rates reflects the CBN’s ongoing efforts to balance inflation control with investor confidence while managing liquidity in the financial system. The strong demand for OMO bills suggests that investors remain keen on securing high-yield, risk-free instruments, even as yields adjust.
