On March 25, 2026, the Central Bank of Nigeria actively cut NTB rates amid overflowing liquidity.
Consequently, stop rates on the 182-day and 364-day bills fell 20 basis points, while the 91-day stayed stable.
Previously, the Monetary Policy Committee had lowered benchmark rates, signalling gradual easing across financial markets nationwide.
Investor Choices
Meanwhile, investors split between short-term bills for liquidity and long-tenor instruments to secure steady returns.
For instance, the 364-day bill attracted ₦2.73 trillion in bids, far surpassing the ₦200 billion offer.
Therefore, the CBN allotted ₦394.88 billion to meet strong demand for longer-tenor instruments actively pursued by investors.
By contrast, the 91-day bill nearly filled its quota, whereas the 182-day bill lagged considerably behind.
This behaviour highlights cautious short-term players and yield-seeking long-term investors simultaneously competing in the market.
Liquidity Effects Cut NTB Rates
Overall, total bids exceeded ₦400 billion across tenors, reflecting a financial system flooded with cash.
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Interestingly, bid rates on the 364-day instrument ranged from 15.95% to 19.50%, demonstrating investor diversity.
Consequently, institutional players front-loaded positions, anticipating further rate moderation and softer yields on government bills.
The decline in long-tenor yields indicates that investors may continue lowering rate expectations if liquidity persists abundantly.
Auction Trends
Furthermore, demand consistently outpaced supply: March 18 subscriptions reached ₦3.06 trillion versus ₦1.05 trillion offered.
Similarly, March 11 and 4 auctions revealed overwhelming preference for the 364-day tenor, reinforcing the trend.
Previously, late 2025 also highlighted long-tenor dominance, as yields peaked at 17.5% before moderating recently.
Because of excess liquidity, estimated above ₦8 trillion, investors actively accepted lower stop rates willingly.
Thus, the March 25 auction signals gradual normalisation, as yields drift lower amid sustained investor demand.
Overall, Nigeria’s fixed-income market now appears poised for moderate, steady returns, balancing liquidity with cautious optimism.
