Nigeria’s Treasury Bills (NTB) market recorded a sharp surge in investor demand at its latest primary market auction, with total subscriptions reaching N4.59 trillion, nearly three times the N1.15 trillion offered by the Debt Management Office (DMO).
The auction, conducted on Wednesday, February 4, 2026, reflects sustained appetite for government securities, particularly longer-dated instruments, amid strong liquidity conditions in the financial system.
Despite the significant inflows, the DMO exercised restraint by allotting N952.60 billion across the three tenors — 91-day, 182-day, and 364-day bills.
Strong Demand for 364-Day Bills
Investor demand was heavily concentrated on the 364-day Treasury bill, which attracted subscriptions of N4.40 trillion against an offer of N800 billion. The DMO allotted N808.78 billion, leveraging the strong demand to reduce borrowing costs.
364-day Treasury Bill
Offer: N800.0 billion
Subscription: N4.40 trillion
Allotment: N808.78 billion
Stop rate: 16.99% (down 137 basis points from January’s 18.36%)
The sharp decline in the one-year stop rate highlights the DMO’s pricing power and reflects growing investor confidence in longer-term government securities.
Mixed Performance for Shorter Tenors
182-day Treasury Bill
Offer: N200.0 billion
Subscription: N123.41 billion
Allotment: N80.61 billion
Stop rate: 16.65% (unchanged)
91-day Treasury Bill
Offer: N150.0 billion
Subscription: N66.05 billion
Allotment: N63.21 billion
Stop rate: 15.84% (unchanged)
Unlike the one-year bill, the 91-day and 182-day tenors recorded weaker demand relative to their offers. Stop rates on both maturities remained unchanged from the January 2026 auction.
What This Means for Investors
The nearly 299% oversubscription underscores persistent liquidity chasing risk-free assets, as investors continue to favor Treasury Bills over equities and other riskier instruments.
The DMO’s decision to under-allot relative to total subscriptions while reducing the one-year yield signals increasing market depth and confidence in Nigeria’s sovereign instruments.
The drop in the 364-day stop rate from 18.36% in January to 16.99% in February represents a shift toward a more issuer-friendly environment, potentially easing the government’s short-term borrowing costs.
Analysts suggest that continued demand for longer-dated NTBs may reflect expectations of moderating rates in the near term, prompting investors to lock in relatively attractive yields while available.
The Business Bureau will continue to monitor developments in the fixed income market as part of broader coverage under Nigeria News Today.
