Nigeria’s Debt Management Office (DMO) launched 2026 with its first treasury bill auction, and investors responded strongly, raising ₦1.144 trillion despite higher interest rates across all maturities.
Strong Demand For Long-Term Bills
Notably, the 364-day bill dominated the auction.
Investors bid ₦1.38 trillion against an offer of ₦800 billion, allowing the DMO to raise ₦987.78 billion.
Consequently, the stop rate surged to 18.47%, the highest across all tenors.
Short-Term Bills Attract Moderate Interest
In contrast, shorter maturities drew less attention.
The 91-day bill generated ₦108.17 billion at 15.80%, while the 182-day bill raised ₦48.23 billion at 16.50%.
Clearly, investors favoured either long-term returns or short-term liquidity.
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Meanwhile, mid-term bills received subdued subscriptions, reflecting selective strategies in a high-rate environment.
NTBs As Liquidity And Yield Tools For DMO Raise
Moreover, market analysts said the auction shows cautious confidence.
Investors actively chased secure yields while managing reinvestment risks amid policy uncertainty.
NTBs also play a critical role for the Central Bank of Nigeria (CBN) in managing liquidity.
By selling bills, the CBN absorbs excess cash, curbs inflation, and stabilises the naira.
Furthermore, when NTBs mature, the government returns principal plus interest, keeping balance in the financial system and economy.
The auction highlights strong domestic market depth.
Investors remain willing to pay for security and higher returns, signalling resilient demand.
In summary, the story of January 7 is clear: long-term NTBs dominate, short-term bills provide liquidity, and mid-term tenors remain less attractive.
Overall, investors continue to prefer NTBs for hedging risk and locking in elevated yields.
