The Central Bank of Nigeria (CBN) has announced plans to auction N5.8 trillion in Treasury Bills (NTBs) between July and September 2026. This significant increase in the domestic borrowing plan is more than four times higher than the net target in the previous second quarter.
The Q3 2026 NTB Issuance Programme, obtained by Nairametrics, outlines the government's strategy to manage excess liquidity, finance its fiscal deficit of about N29.20 trillion, and sustain attractive yields for investors.
After accounting for approximately N2.64 trillion in maturing Treasury Bills during the quarter, the program implies a net new borrowing of about N3.16 trillion. This reinforces a more aggressive domestic debt strategy compared to previous quarters.
The Q3 issuance program shows a clear preference for longer-dated securities. The 364-day Treasury Bill accounts for N4.0 trillion, representing about 69% of the total planned issuance.
Specifically, the CBN plans to issue N900 billion in 91-day Treasury Bills, N900 billion in 182-day bills, and N4.0 trillion in 364-day bills, bringing the total planned issuance to N5.8 trillion. Treasury Bills worth approximately N2.644 trillion are scheduled to mature, comprising N550.83 billion in 91-day bills, N503.19 billion in 182-day bills, and N1.591 trillion in 364-day bills.
Thirteen auction dates are scheduled between July 1 and September 23, 2026. The largest auction sessions are set for July 8, July 29, August 5, August 12, August 26, and September 2, with each expected to offer about N700 billion.
The program also notes two gaps on July 22 and August 19, when Treasury Bills worth N378.43 billion and N429.23 billion respectively will mature without corresponding new issuances. These will result in temporary liquidity injections before subsequent auctions absorb the excess funds.
Market analysts view the expanded program as a deliberate policy effort to manage liquidity, keep interest rates elevated, and support exchange rate stability. However, they acknowledge the higher financing costs associated with this strategy.
Charles Fakrogha, Chief Executive Officer of ECL Asset Management Limited, stated that the program demonstrates deliberate economic planning aimed at controlling money supply, inflation, and exchange rate stability. He noted that the bills are coming at above 18%, making them very attractive to investors.
Tajudeen Olayinka, Chief Executive Officer of Wyoming Capital & Partners Limited, suggested that the larger issuance indicates policymakers' intent to keep interest rates elevated to attract foreign portfolio inflows and stabilize the naira. He cautioned that maintaining high interest rates over an extended period comes at a significant cost to both the government and the broader economy.
Both analysts agree that the elevated interest rates on these Bills could trigger further exit from the equities market into government securities, although some investors may still rotate into fundamentally strong stocks.
The Q3 program represents a significant escalation in domestic borrowing compared with earlier plans for 2026. Nairametrics reported in April that the CBN initially planned to auction N3.95 trillion during Q2 2026, though actual allotments eventually approached N5 trillion due to strong investor demand.
The continued dominance of the 364-day bill reflects persistent investor demand for longer-duration instruments. Recent Treasury Bill auctions have recorded oversubscription ratios ranging from two to five times, with the stop rate on the one-year bill reaching 17.34% at the June 17 auction.
The program also comes amid weaker foreign participation in the Nigerian Exchange, with domestic investors accounting for about 91% of market transactions in May 2026. The projected net new issuance of approximately N3.16 trillion is about 4.2 times higher than the planned net issuance of about N750 billion in Q2 2026.
The CBN notes that offer amounts remain subject to change, and one Treasury Bill unit is valued at N1,000. The first major test of investor appetite under the expanded program will occur on July 8, when approximately N700 billion in Treasury Bills is scheduled for auction.
The size of the Q3 issuance program underscores the government’s reliance on the domestic debt market to finance fiscal obligations while maintaining tight monetary conditions. Treasury Bill auctions will serve as a key indicator for interest rates, liquidity, and exchange rate management in the months ahead.
