June 4 (THEWILL) — The Central Bank of Nigeria (CBN) raised ₦1.457 trillion at its June 3 Treasury Bills (NTB) auction after increasing stop rates across all tenors, despite attracting subscriptions more than double the amount offered.
Auction results released by the CBN showed total subscriptions reached ₦2.160 trillion against an offer size of ₦1 trillion, reflecting sustained investor appetite for short-term government securities amid elevated interest rates.
The strongest demand was recorded for the 364-day instrument, which attracted ₦1.946 trillion in subscriptions against an offer of ₦800 billion. The CBN eventually allotted ₦1.243 trillion on the one-year paper.
Across the three maturities, stop rates edged higher. The 91-day bill cleared at 16.05 percent, up from 15.95 percent at the previous auction, while the 182-day bill rose to 16.19 percent from 16.14 percent. The benchmark 364-day bill settled at 16.35 percent, compared with 16.15 percent previously.
The apex bank allotted ₦131.18 billion on the 91-day instrument, fully accommodating all bids received. For the 182-day tenor, ₦82.98 billion was allotted from subscriptions of ₦83.55 billion.
The auction came against the backdrop of expectations of substantial liquidity inflows into the banking system this month. According to projections by the Financial Markets Dealers Association (FMDA), about ₦10.9 trillion is expected to enter the financial system in June, including ₦7.77 trillion from maturing Open Market Operations (OMO) bills.
The result also follows the Monetary Policy Committee’s decision to retain the Monetary Policy Rate at 26.5 percent, maintaining a tight monetary stance aimed at curbing inflation.
The auction underscores the delicate balancing act facing monetary authorities: while investor demand for risk-free government securities remains exceptionally strong, the CBN continues to use Treasury bills and other market instruments to absorb excess liquidity and support price stability. With trillions of naira expected to flow into the financial system this month, the June 3 auction marks the opening phase of what could become an intensive liquidity management cycle for the apex bank.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
