The Central Bank of Nigeria (CBN) has successfully raised a total of N2.93 trillion from recent auctions of Treasury Bills (T-Bills) and Open Market Operation (OMO) bills, highlighting surging investor appetite for fixed-income instruments.
At the midweek Nigerian Treasury Bills (NTB) auction, the CBN initially offered N400 billion across three tenors — 91-day, 182-day, and 364-day maturities.
However, the auction was massively oversubscribed, with investors placing bids totaling N1.54 trillion, yielding a bid-to-offer ratio of 3.9x.
In response to this strong demand, the apex bank over-allotted a total of N714.38 billion, directing most of the funds — N650.28 billion — toward the longer 364-day paper. Stop rates across all maturities declined, reflecting bullish market sentiment.
T-Bills are short-term government securities issued to fund public expenditures, while OMO bills are specialized tools used by the CBN to regulate money supply and liquidity in the economy. This successful fundraising underscores investor confidence in Nigeria's monetary instruments despite broader macroeconomic headwinds.