May 07, (THEWILL) — The Central Bank of Nigeria (CBN) allotted ₦731.75 billion at its Treasury Bills Primary Market Auction conducted on May 6, 2026, amid overwhelming investor demand for long-dated government securities.
Auction results obtained by Nairametrics showed that total subscriptions rose sharply to ₦2.41 trillion, significantly higher than the ₦700 billion initially offered across the 91-day, 182-day, and 364-day tenors.
Investor appetite remained heavily concentrated on the 364-day Treasury bill, reflecting continued preference for higher-yield, longer-duration instruments in a still uncertain macroeconomic environment. The one-year bill attracted subscriptions worth ₦2.23 trillion against an offer size of ₦550 billion, prompting the apex bank to allot ₦600.49 billion.
The 182-day instrument recorded subscriptions of ₦105.33 billion compared to the ₦50 billion offered, with allotments settling at ₦67.68 billion. Demand for the 91-day paper was relatively weaker, as subscriptions came in at ₦71.23 billion against ₦100 billion offered, while allotments stood at ₦63.58 billion.
Despite the strong oversubscription levels, stop rates declined marginally across all maturities, indicating robust market liquidity.
The 91-day bill rate eased slightly to 15.949 percent from 15.95 percent, while the 182-day tenor declined to 16.14 percent from 16.19 percent . The 364-day bill also moderated to 16.15 percent from 16.20 percent.
However, effective yields remained attractive to investors. Analysts estimate true yields at about 16.62 percent for the 91-day bill, 17.57 percent for the 182-day bill, and 19.26 percent for the 364-day instrument.
The latest auction extends the aggressive Treasury bills issuance pattern seen in April 2026. During the month, the CBN conducted two major auctions worth ₦700 billion and ₦750 billion, but total allotments rose to about ₦1.63 trillion as investor demand remained elevated.
Market analysts say the sustained preference for longer-dated securities suggests investors are moving quickly to lock in current yields before rates potentially soften in the coming months.
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.
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