Central Bank of Nigeria (CBN) has in the first quarter of 2025 withdrawn as much as N5.5 trillion from the financial system through the issuance of treasurer bills.
It would have been much more, but the apex bank rejected. N9.67 trillion investors’ bid. Investors staked N15.20 trillion during the period.
The total amount of bills allotted to investors accounted for about 36.4 per cent of all subscriptions received at the eight primary market auctions conducted in the first three months of the year.
Treasury Bills are short term government debt instruments issued by the CBN.
This is one of the several ways the government raises funds. The CBN also uses treasury bills to control money supply in the economy.
Inspite of the over N9 trillion bids rejected, analysts say the amount raised by the authority exceeded its target for the first quarter.
With tight liquidity conditions and increased appetite for long-dated Treasury bills, spot rates were repriced. In its monthly investors note, AIICO Capital Limited highlighted that the Treasury Bills market saw fluctuating sentiment throughout March, driven by key auctions and investor expectations.
The month began quietly, with limited trading activity as market participants awaited the Nigerian Treasury bills primary auctions. Fixed income market analysts at AIICO Capital Limited said the first auction of the month saw strong investor participation, with the Debt Management Office (DMO) offering N650 billion in 91-day, 182-day, and 364-day bills.
This auction attracted a significant subscription of N1.92 trillion, pushing stop rates for the longer tenors to 17.75 per cent and 17.82 per cent , while the short tenor remained at 17.00 per cent, according to analysts at MarketForce.