{"id":2394,"date":"2026-10-28T14:01:42","date_gmt":"2026-10-28T14:01:42","guid":{"rendered":"https:\/\/globalnigerianews.com\/index.php\/2026\/10\/28\/cbn-offers-n800bn-treasury-bills-as-bank-deposits-near-n7trn-businessday-ng\/"},"modified":"2026-10-28T14:01:42","modified_gmt":"2026-10-28T14:01:42","slug":"cbn-offers-n800bn-treasury-bills-as-bank-deposits-near-n7trn-businessday-ng","status":"publish","type":"post","link":"https:\/\/globalnigerianews.com\/index.php\/2026\/10\/28\/cbn-offers-n800bn-treasury-bills-as-bank-deposits-near-n7trn-businessday-ng\/","title":{"rendered":"CBN offers N800bn Treasury bills as bank deposits near N7trn \u2013 Businessday NG"},"content":{"rendered":"

The Central Bank of Nigeria (CBN) will offer N800 billion in Treasury bills on Wednesday as banks\u2019 deposits with the apex bank approach N7 trillion, with investors weighing the returns on government securities against rising liquidity in the financial system.\n<\/p>\n

The auction comes as banks held N6.98 trillion at the CBN\u2019s Standing Deposit Facility (SDF) on Tuesday, October 27, while the Financial Markets Dealers Association (FMDA) projected N2.81 trillion in inflows into the financial system this week.\n<\/p>\n

The figures point to substantial funds within the banking system that could support demand for government securities, although the amount investors commit to the auction will depend on their yield expectations and competing liquidity-management operations.\n<\/p>\n

According to the CBN\u2019s auction notice, the offer comprises N100 billion in 91-day Treasury bills, N100 billion in 182-day bills and N600 billion in 364-day bills. The one-year instrument accounts for 75 percent of the total offer.\n<\/p>\n

The bills will be issued through a Dutch auction, with settlement scheduled for Thursday, October 29.<\/p>\n

Liquidity inflows to support demand<\/h3>\n

The projected N2.81 trillion in weekly inflows comprises N2.41 trillion from maturing Open Market Operation (OMO) bills, N263.58 billion in Federal Government bond coupon payments, N130.72 billion in Treasury bill maturities and N10.92 billion in corporate bond coupon payments, according to FMDA data.\n<\/p>\n

OMO maturities account for approximately 86 percent of the expected inflows, providing a major source of funds for financial institutions during the week.\n<\/p>\n

System liquidity rose 10.39 percent week-on-week to N6.936 trillion in the week ended October 23, up from N6.283 trillion the previous week.\n<\/p>\n

However, the inflows come alongside government borrowing and the CBN\u2019s liquidity-management operations, which can absorb funds from the banking system.\n<\/p>\n

The N800 billion Treasury bill offer exceeds the N130.72 billion in Treasury bills scheduled to mature this week by N669.28 billion. If the government allots the full advertised amount, the auction would absorb more funds than Treasury bill maturities return to investors.<\/p>\n

The net effect on liquidity will also depend on how much investors subscribe, the final amount allotted, and whether they reinvest proceeds from maturing securities.\n<\/p>\n

One-year bills take centre stage<\/h3>\n

The offer\u2019s concentration in 364-day Treasury bills puts demand for the one-year instrument at the centre of the auction.\n<\/p>\n

At the October 7 auction, investors submitted N1.683 trillion in bids for the one-year bill, while the Debt Management Office (DMO) allotted N968.47 billion against a total advertised offer of N900 billion.\n<\/p>\n

The stop rate on the 364-day bill fell to 15.85 percent at that auction, reflecting a decline from earlier highs.\n<\/p>\n

However, the October 14 auction showed that strong subscriptions do not necessarily translate into equivalent government borrowing. The DMO received N1.032 trillion in bids across the three tenors but accepted only N269.06 billion, rejecting approximately 74 percent of subscriptions.<\/p>\n

The one-year bill attracted N982.21 billion in bids at the October 14 auction, but only N220 billion was allotted. Its stop rate rose five basis points to 15.90 percent, marking its first increase since August.\n<\/p>\n

The latest auction therefore comes against a backdrop of substantial banking-system liquidity, continued investor interest in longer-dated Treasury bills, and the government\u2019s efforts to manage borrowing costs.\n<\/p>\n

Investors will be watching the subscription levels, allotments, and stop rates to assess whether demand remains strong and whether the government can raise funds without accepting higher yields.\n<\/p>\n

The results will also help indicate how the balance between liquidity inflows and the CBN\u2019s absorption operations is influencing pricing in the Treasury bill market.\n<\/p>\n

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Related News<\/h4>\n<\/p><\/div>\n
\n\t\t\t\t\t\t\"\"\t\t\t\t\t\t<\/p>\n
\n\t\t\t\t\t\t\tAyomide Odunlami<\/a><\/strong><\/p>\n

Ayomide Odunlami is a Tax Reporter at BusinessDay, covering Nigeria\u2019s tax reforms, compliance trends, and government revenue strategies. She reports on how evolving tax policies affect businesses, investors, and the broader economy, providing clarity on complex regulatory issues through data-driven journalism.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

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Source: <\/p>\n

Businessday NG<\/div>\n","protected":false},"excerpt":{"rendered":"

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