The Central Bank of Nigeria (CBN) will offer ₦900 billion in Nigerian Treasury Bills (NTBs) on Wednesday, October 7, 2026, in the first Treasury Bills auction of the fourth quarter, with the 364-day instrument accounting for ₦700 billion of the total offer.
The auction is being conducted on behalf of the Debt Management Office (DMO), with settlement scheduled for Thursday, October 8, as investors prepare for the first major Treasury Bills sale of Q4 2026.
Key Highlights
- CBN will offer ₦900 billion in Treasury Bills on October 7.
- The auction is the first NTB sale of Q4 2026.
- The 91-day bill has an offer size of ₦100 billion.
- The 182-day bill also has an offer size of ₦100 billion.
- The 364-day Treasury Bill accounts for ₦700 billion, or about 77.8% of the total.
- Settlement is scheduled for October 8, 2026.
- The CBN said the Q4 2026 NTB issuance calendar would be released later.
- The previous 364-day Treasury Bill auction cleared at a 15.89% stop rate.
- Investors submitted about ₦4.09 trillion for the one-year bill at the September 23 auction.
- The auction comes after the Monetary Policy Committee cut the Monetary Policy Rate by 350 basis points to 23%.
CBN ₦900 Billion Treasury Bills Auction Opens Q4
The CBN ₦900 billion Treasury Bills auction represents the opening NTB sale for the fourth quarter of 2026.
According to the auction notice, the offer comprises ₦100 billion in 91-day Treasury Bills, ₦100 billion in 182-day bills and ₦700 billion in 364-day bills.
The 364-day instrument therefore represents approximately 77.8% of the total offer, maintaining the recent preference for longer-dated Treasury Bills.
Settlement for successful bids is scheduled for Thursday, October 8.
364-Day Treasury Bill Dominates ₦900bn Offer
The structure of the October auction continues the recent trend of placing a larger proportion of issuance in the one-year Treasury Bill.
Of the ₦900 billion being offered, the 364-day bill accounts for ₦700 billion, while the shorter 91-day and 182-day instruments account for ₦100 billion each.
The dominance of the longer-dated instrument reflects strong investor appetite for one-year government securities during recent auctions.
At the September 23 auction, investors submitted approximately ₦4.09 trillion in bids for the 364-day bill, representing about 97% of total subscriptions across the three tenors.
Treasury Bill Yields Continue to Fall
The October auction comes against a backdrop of declining Treasury Bill stop rates.
At the September 23 auction, the 364-day Treasury Bill stop rate fell to 15.89%, down from 16.62% at the previous auction.
The 91-day and 182-day instruments also recorded stop rates of 15.50% and 15.80%, respectively.
The decline followed the Monetary Policy Committee’s decision to cut the Monetary Policy Rate by 350 basis points to 23%.
The lower policy rate has contributed to adjustments across Nigeria’s fixed-income market as investors reassess returns on government securities.
Investors Show Strong Demand for One-Year NTBs
Demand for the 364-day instrument has remained significantly stronger than demand for shorter Treasury Bills.
At the September 23 auction, investors submitted about ₦4.09 trillion for the one-year bill against an offer of ₦400 billion.
The heavy demand at the long end has been a recurring feature of Nigeria’s Treasury Bills market in 2026, with investors showing a preference for locking in available yields on longer-dated instruments.
Market participants will therefore be watching the October 7 auction closely to determine whether the 364-day bill again attracts substantial demand and whether its stop rate declines further.
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CBN Yet to Release Full Q4 Treasury Bills Calendar
The CBN said the indicative Treasury Bills issuance calendar for the fourth quarter would be released later.
The quarterly calendar typically provides information on planned auction dates, offer amounts and Treasury Bills expected to mature during the period.
The ₦900 billion announced for October 7 should therefore be viewed as the size of the opening Q4 auction, rather than the total amount the government plans to issue throughout the fourth quarter.
CBN Raised ₦8.14tn in Q3 Treasury Bills Auctions
The latest auction follows an active third quarter for Nigeria’s Treasury Bills market.
The CBN and DMO had initially targeted ₦5.8 trillion in gross Treasury Bills issuance for Q3 2026.
However, approximately ₦8.14 trillion was ultimately allotted across eight auctions, exceeding the original target by about 40.34%.
The 364-day instrument accounted for the largest share of the issuance during the quarter, continuing the market’s strong preference for longer-dated government securities.
October Auction to Test Falling Yield Trend
The October 7 auction will provide an early indication of how investors are responding to the lower interest-rate environment entering the fourth quarter.
Attention is expected to focus on demand for the ₦700 billion 364-day Treasury Bill and whether the stop rate falls below the 15.89% recorded at the September 23 auction.
The results could also provide insight into liquidity conditions and investor appetite for government securities as the CBN and DMO begin the fourth-quarter borrowing programme.
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