Two-week NTB issuances approach N3 trillion as government leans on local debt markets to bridge fiscal gap…
The Central Bank of Nigeria (CBN) is set to raise N1.05 trillion in Treasury Bills (NTBs) today, March 18, bringing the federal government’s total short-term borrowing in just two weeks close to N3 trillion.
The auction, announced via an official tender notice on behalf of the Debt Management Office (DMO), will employ a Dutch auction system, allowing yields to be determined by investor demand and prevailing liquidity conditions. The move underscores the government’s continued reliance on domestic debt markets amid mounting fiscal pressures.
The NTBs on offer are structured across three maturities:
- 91-day bills: N100 billion
- 182-day bills: N150 billion
- 364-day bills: N800 billion
The heavy allocation toward longer-tenor instruments reflects strong investor appetite for higher-yield, longer-dated securities. Bids are to be submitted electronically through the CBN’s Scripless Securities Settlement System (S4) between 8:00 a.m. and 11:00 a.m., in multiples of N1,000 and a minimum subscription of N50.001 million. Results will be announced the same day, with payments due by 11:00 a.m. the following settlement day.
This latest issuance follows a series of aggressive short-term borrowings earlier this month. On March 4, the CBN raised N1.01 trillion at slightly higher rates, with yields on longer maturities climbing to 16.73%, while on March 11, another N933.92 billion was raised, largely at stable rates. If today’s N1.05 trillion is fully allotted, total NTB borrowing between March 4 and March 18 will reach N2.99 trillion.
Experts say the rapid pace of NTB auctions signals ongoing fiscal stress, largely driven by the need to refinance maturing obligations rather than new spending.
“The first thing to examine is the maturity profile of existing government debt,” said Olubunmi Ayokunle, Head of Financial Institutions Ratings at Augusto & Co. “If the government is raising funds mainly to roll over maturing obligations, the net impact on total borrowing may not be as significant as it appears.”
Blakey Okwudili Ijezie, convener of Blakey’s National Economic Conference, added, “This is not routine financing. It is a signal—a signal of pressure, a signal of urgency, a signal of a system stretched. Interest rates will rise because such volumes cannot be absorbed cheaply. When rates rise, businesses borrow less, expansion slows, and jobs are threatened.”
The NTB sales come against the backdrop of Nigeria’s 2026 budget, which targets a fiscal deficit of N20.12 trillion. Domestic borrowing is expected to account for over 70% of the shortfall, or approximately N14.30 trillion, highlighting the government’s heavy reliance on local debt markets to fund expenditures. Additional financing sources include external loans, multilateral and bilateral funding, and proceeds from privatisation and asset sales.
While Treasury Bills remain a key tool for liquidity management and deficit financing, analysts warn that the large-scale, frequent issuances may drive interest rates higher and crowd out private-sector credit, as banks increasingly allocate funds to relatively risk-free government securities.
As Nigeria continues to navigate its fiscal pressures, the outcome of today’s NTB auction will be closely watched by investors, policymakers, and businesses, with implications for borrowing costs, liquidity, and broader economic activity.
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