CBN returns to Primary Market with N700 billion NTB auction on August 12

The Central Bank of Nigeria (CBN) acting on behalf of the Debt Management Office (DMO), is returning to the primary market with a N700 billion Nigerian Treasury Bills (NTB) auction scheduled for Wednesday, August 12, just one week after withdrawing a similar-sized offering to prevent liquidity conditions from overheating.

According to a new Invitation to Tender issued by the apex bank, the CBN will offer N700 billion across the 91-day, 182-day and 364-day Treasury Bills tenors, marking the resumption of Treasury Bills sales following the cancellation of the August 5 auction.

The upcoming session is one of the six largest-sized auctions in the CBN’s aggressive third-quarter issuance calendar and comes against the backdrop of expected N1.58 trillion in OMO maturities this week, according to Cordros Securities’ weekly economic and market report dated August 7.

Bids will be received electronically through the CBN S4 Web Interface between 8:00 a.m. and 11:00 a.m. on Wednesday, August 12, while successful bids will be settled on Thursday, August 13.

What the data is saying:

All Money Market Dealers are required to submit bids electronically through the CBN S4 Web Interface, with each bid made in multiples of N1,000 and subject to a minimum subscription of N50,001,000. Authorised Money Market Dealers may submit multiple bids for their own accounts, non-Money Market Dealers or interested members of the public.

The auction is structured as follows:

91-day Treasury Bill: N100 billion on offer.
182-day Treasury Bill: N100 billion on offer.
364-day Treasury Bill: N500 billion on offer.
Total offer size: N700 billion.

The securities will be issued through the Dutch auction system.

The CBN said the auction result will be announced on Wednesday, August 12, while allotment letters will be issued to successful bidders on Thursday, August 13. Successful bidders are required to make payment to their accounts with the CBN not later than 11:00 a.m. on Thursday, August 13.

The apex bank also reserved the right to reject any bid or vary the amount offered in line with prevailing market realities at the time of the auction.

More insights:

The return to the primary market comes just one week after the CBN and DMO withdrew a similarly sized N700 billion NTB auction that had initially been scheduled for August 5.

The cancellation followed an aggressive two-day OMO liquidity mop-up, during which the CBN absorbed a combined N4.69 trillion from the banking system on August 3 and 4.
The upcoming August 12 auction, however, comes as significant liquidity is expected to return to the financial system, with an estimated N1.58 trillion in OMO Bills maturing during the week, according to Cordros Securities.
The sizeable maturity could provide banks and other institutional investors with fresh liquidity ahead of the Treasury Bills auction, potentially supporting demand across the three tenors.

The 364-day instrument remains the dominant component of the offer, accounting for N500 billion, or approximately 71.4% of the total N700 billion auction size, underscoring the CBN’s continued preference for longer-dated short-term government securities.

What you should know:

The August 12 auction is part of the CBN and DMO’s broader Q3 2026 Treasury Bills issuance programme, which scheduled several large auction sessions expected to offer around N700 billion each.

The resumption of Treasury Bills sales also follows an exceptionally active period in Nigeria’s fixed-income market, with the CBN intensifying its liquidity management operations through repeated OMO auctions.

The CBN had withdrawn the August 5 N700 billion auction shortly after absorbing N4.69 trillion through OMO Bills in two consecutive sessions, raising concerns that proceeding with another large Treasury Bills sale could further tighten liquidity conditions.

In July alone, the apex bank had already drained N7.18 trillion from the banking system through OMO auctions.

Market participants will also be watching closely to see whether stop rates, particularly on the 364-day Treasury Bill, maintain their recent downward trend or adjust in response to the changing liquidity environment.