Q1 2026: CBN Raises N4.86tn via NTBs as 91-Day Rate Hits 15.95%

Kayode Tokede

The Central Bank of Nigeria (CBN) in the first quarter of 2026 raised an estimated N4.86 trillion through the Nigerian Treasury Bills (NTB) as investors hedge against double-digit inflation. 

This represents a 12.2 per cent decline from the N5.54 trillion raised in the first quarter of 2025.   

Primary market data showed massive interest by investors with subscription reaching N14.84 trillion, N9.75 trillion above the amount offered by the CBN. 

The data showed that the CBN, which planned to raise N4.73 trillion in the period under review, eventually settled for N4.86 trillion.

The CBN uses NTB as a primary open market operations tool to regulate liquidity in the banking system. By issuing NTBs, the apex bank absorbs excess cash from banks and investors, tightening money supply and controlling inflationary pressures.

Amid massive subscription, the spot rates on 91-Day NTB increased to  15.95 per cent as of the March 25, 2026 auction from 15.80 per cent in the first NTB auction in  January 2026. 

The stop rate on 182-Day moved from 18.6 per cent January 2026 to 16.42 per cent as of March 25, 2026.

The CBN has been scaling back on elevated discount rates offered on the NTB due to strong demand and the fact that the benchmark interest rate has raced ahead of the country’s headline inflation that has seen decline in recent months.

By tightening its monetary policy through higher interest rates and large NTB auctions, the CBN aims to curb rising inflation and stabilise the foreign exchange rate, thereby fostering a more balanced economic environment.

This has reflected in the  dwindling inflation rate, currently at 15.06 per cent as of February 2026,  to mark a decrease from previous months. 

Investors’ diversified demand across the different maturities of NTB reflects strategic positioning for various investment horizons and signals a healthy trading environment in the Nigerian debt market.

Meanwhile in the second quarter of 2026, CBN planned to auction N3.95 trillion in NTBs in the beginning from April 8, 2026.

The projected net issuance amounts to N750 billion after settling N3.2 trillion in maturing bills by the end of June. The programme highlights a strong preference for longer-dated instruments, reflecting prevailing investor demand and the apex bank’s liquidity management strategy.

The breakdown of the programme showed a strong bias toward longer-dated instruments, with N2.85 trillion—representing the bulk of the issuance—allocated to 364-day Treasury Bills. In comparison, the CBN plans to issue N700 billion in 91-day bills and N400 billion in 182-day bills, reflecting relatively lower emphasis on short- and medium-term tenors.

The issuances are expected to be conducted in six sessions over three months, with the first two sessions of N700 billion and N750 billion on April 8 and 22 respectively.

The calendar scheduled another two auctions of N700 billion and N650 billion on May 6 and 20 respectively.

The final auctions of the quarter are scheduled to hold on June 3 and 17 where the sums of N700 billion and N450 billion will be auctioned respectively.

The skew toward longer maturities aligns with investor’s preference for locking in higher yields in a high-interest-rate environment.

During the same period, CBN scheduled for settlement a total of N3.2 trillion maturities spread across the three months with June having clustered maturities all through the four weeks of the month.  Maturing bills of N356.47 billion and N758.31 billion are expected for settlement on April 8 and 22 respectively. On May 6 and 20, maturing bills amounting to N556.02 billion and N634.5 billion respectively will be settled. 

Analysts noted that the dominance of 364-day instruments allows the CBN to extend maturities, reduce refinancing frequency, and stabilise short-term rates while maintaining tight liquidity conditions.

Analysts stated that the programme reflects a deliberate liquidity tightening stance by the apex bank, with implications for both fixed income and equity markets. They also highlight the potential for portfolio shifts as investors respond to elevated yields.

MD/CEO, Globalview Capital Limited,  Aruna Kebira, said, “The heavy tilt toward 364-day bills reflects investor appetite for yield certainty. The scale and structure of the Q2 NTB programme signal a deliberate liquidity tightening stance by the CBN,” 

“Elevated yields on 364-day bills, if sustained in Q2, may provide a compelling risk-free alternative that could trigger portfolio rebalancing away from equities, particularly among institutional investors seeking capital preservation,” he added.

Also, the Vice President Highcap Securities, Mr.  David Adnri said. “With gross issuance at N3.95 trillion, yields will likely remain elevated to sustain strong institutional demand. We may see reduced liquidity and softer valuations in equities as funds rotate into fixed income.” 

“However, fundamentally strong, dividend-paying stocks may remain resilient, as investors become more selective rather than exiting the market entirely. The NTB programme is likely to exert downward pressure on the equities market in the near term,” he added.