November 17, (THEWILL) — The Central Bank of Nigeria (CBN) is set to conduct a N700 billion Treasury-bill (T-bill) auction through its primary market, marking a significant move in its ongoing monetary operations.
The offer, to be raised on behalf of the Federal Government, is spread across three tenors: N100 billion for 91-day, N150 billion for 182-day, and N450 billion for 364-day bills.
For the first time under a new regime, this auction will be conducted exclusively via the CBN’s S4 electronic platform, bypassing traditional intermediaries and primary dealer market makers (PDMMs).
The tightly controlled process is intended to eliminate information asymmetry, boost transparency, and give the central bank full control over price discovery in the T-bills market.
Bids must be submitted between 8:00 a.m. and 11:00 a.m. on November 19, 2025, with a minimum bid of N50,001,000, quoted in multiples of N1,000.
Analysts say the auction reflects a broader structural reform: from this issue, the CBN is asserting direct control over primary market flows, reshaping the fixed-income landscape.
The Dutch auction format will allow successful bidders to pay the marginal (stop) rate, balancing allocation fairness with market dynamics.
Demand for T-bills has been strong, driven by excess system liquidity.
In a recent auction, the 364-day tenor alone attracted N1.05 trillion in bids despite only N350 billion being offered.
Investors appear hungry for relatively safe, yield-bearing short-term instruments amid macro uncertainty.
Still, risks remain. The high volume of T-bill issuance could crowd out other borrowing, while the CBN’s move to centralize allocations may rattle market participants used to dealer-based price discovery.
But for now, the N700 billion auction signals the bank’s confidence in using short-term debt tools to mop up liquidity and reinforce financial stability.
Ogochukwu Onwaeze
