The Central Bank of Nigeria (CBN) raised N8.14 trillion through Nigerian Treasury Bills (NTB) auctions in the three months to September 2026, representing 40.34 per cent above its N5.8 trillion target for the third quarter (Q3).
Analysis of primary market auction results showed that the apex bank exceeded its advertised offers in most sessions, driven largely by strong demand for the 364-day instrument.
After elevated rates in July and August, the CBN lowered stop rates across the three standard tenors in September. The 364-day rate fell from a Q3 peak of 17.70 per cent on July 8 to 15.89 per cent by September 23.
Across eight auctions reviewed, offer sizes ranged from N600 billion to N750 billion, while allotments ranged from N497.59 billion to N1.456 trillion.
On July 8 and 15, the CBN allotted N1.06 trillion and N1.191 trillion respectively, against offers of N700 billion and N600 billion. The 364-day stop rate moved from 17.70 per cent to 17.66 per cent.
Allotments later rose to N1.25 trillion and N1.456 trillion in the July and August auctions, respectively, before moderating to N762.88 billion on August 26 and N865.71 billion on September 2.
The 364-day bill remained the dominant instrument, although its stop rate declined substantially toward the end of the quarter.
The decline followed the Monetary Policy Committee’s (MPC) decision to cut the benchmark interest rate by 350 basis points.
In an emailed note to investors, Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, said the MPC cut the policy rate to 23 per cent from 26.50 per cent and narrowed the corridor to plus 50 and minus 300 basis points.
The 364-day bill cleared at 15.89 per cent, down from 16.62 per cent, with a true yield of 18.89 per cent. Bids totalled N4.09 trillion against N400 billion offered, with N447.07 billion allotted.
The 91-day and 182-day bills cleared at 15.50 per cent and 15.80 per cent respectively, with both instruments undersubscribed.
Rewane said the policy transmission had begun to reflect in the money market, with the open repo rate falling to 21 per cent and the overnight rate to 21.76 per cent.
The CBN said monetary reform required alignment with fiscal policy, adding that the coordination had helped reduce domestic borrowing costs and improve liquidity conditions.