The Central Bank of Nigeria (CBN) is preparing for a significant Treasury Bills auction this week, offering securities worth approximately N1.15 trillion to investors. This move is part of the apex bank's ongoing strategy to manage liquidity levels and meet government borrowing requirements in the domestic financial market.
Details of the Upcoming Auction
Market analysts, citing reports from MarketForces Africa, indicate the auction is scheduled for Wednesday, January 21, 2026. The offering will feature the standard suite of tenors: 91-day, 182-day, and 364-day Treasury Bills. This event follows closely on the heels of the first T-bills auction of the year, which took place just two weeks prior.
Financial experts anticipate robust demand for the instruments, driven primarily by a surplus of liquidity within Nigeria's financial system. This expectation persists despite observed volatility in the fixed-income market in recent trading sessions.
Mixed Investor Sentiments in Secondary Market
Data from last week's secondary market activity revealed a landscape of mixed investor sentiment. Trading was characterized by sell pressure, particularly on short- and mid-term bills. Analysts have linked this cautious approach to prevailing inflation expectations and a trend of profit-taking by investors.
An investor note from AIICO Capital Limited highlighted that average benchmark discount rates climbed as high as 16.64% mid-week. Notable yield movements were recorded on selected bills maturing in June, August, and September 2026. Overall trading volume remained relatively low, reflecting selective and cautious demand.
However, market sentiment showed a slight improvement towards the week's end. This shift was catalyzed by the release of Nigeria's December inflation figure, which eased to 15.15%, coupled with better liquidity conditions. Mild demand emerged at the long end of the curve, especially for January 2027 bills, where rates saw a marginal decline.
Despite this late uptick, the benchmark discount rate concluded the week slightly higher at 16.65%, signaling a market that remains cautious but where confidence is gradually improving.
Context from the Previous Auction
The backdrop for this week's auction is set by the results of the first T-bills sale of 2026. At that event, the CBN successfully raised spot rates across all tenors after receiving total subscriptions worth about N1.54 trillion.
From the N1.15 trillion offered, the bank allotted roughly N1.14 trillion. The auction results confirmed a continuing trend from the last quarter of 2025, with the CBN increasing stop rates for all maturities:
- The 91-day bill was priced at 15.80%, up from 15.30% in December.
- The 182-day bill rose to 16.50% from 15.50%.
- The 364-day bill was adjusted upward to 18.47%, compared to 17.95% at the prior auction.
This report is based on information from Legit.ng by Business Editor Oluwatobi Odeyinka, who covers energy, money markets, technology, and macroeconomic trends in Nigeria.
