Central Bank recorded an extraordinary N4.59 trillion in bids for its February 6, 2026 Treasury bills auction, achieving a 300% oversubscription rate as investors aggressively sought short-term government securities amid persistent liquidity conditions and attractive yields.
The Debt Management Office (DMO) offered N450 billion across three tenors — 91-day, 182-day, and 364-day bills — but received total subscriptions of N4.592 trillion, reflecting strong demand across all maturities.
The breakdown of bids showed:
- 91-day bills: N1.12 trillion subscribed against N150 billion offered (747% oversubscription)
- 182-day bills: N1.45 trillion subscribed against N150 billion offered (967% oversubscription)
- 364-day bills: N2.02 trillion subscribed against N150 billion offered (1,347% oversubscription)
The Central Bank allotted N450 billion in total, with marginal rates closing at 18.00% for 91-day bills, 19.50% for 182-day bills, and 21.00% for the 364-day paper — levels that continue to reflect elevated short-term interest rates in the domestic money market.
The massive oversubscription is widely seen as evidence of abundant system liquidity, cautious private-sector lending, and a flight to quality amid macroeconomic uncertainty and elevated inflation.
The near 299% oversubscription underscores persistent liquidity chasing risk-free assets, as investors continue to prefer NTBs over equities and other riskier instruments.
The DMO’s cautious approach in under-allotting relative to total subscriptions and reducing the one-year yield suggests growing market depth and strong investor appetite for longer-dated bills, even amid elevated borrowing needs.
Market participants expect the high demand to exert downward pressure on yields in subsequent auctions, although the Central Bank’s tight monetary stance and ongoing open market operations will continue to shape the trajectory of short-term rates.
The February 6 result marks one of the largest single-day Treasury bill subscriptions in Nigeria’s recent history and reinforces the government’s ability to finance its short-term obligations at relatively attractive costs to the fisc.
