By David Akinmola
Nigeria’s Debt Management Office (DMO) has raised N709.621 billion from the Treasury Bills market as yields on the 364-day instrument surged to 17.50 per cent, reflecting sustained investor appetite amid tight monetary conditions.
The auction, conducted yesterday, showed strong demand across all maturities, but the 364-day paper attracted the most interest as investors priced in higher returns following recent monetary tightening by the Central Bank of Nigeria (CBN).
Breakdown of the allocation showed that the one-year bill accounted for the bulk of the haul, with investors moving aggressively toward longer-dated short-term securities to lock in elevated yields. Market analysts say the jump to 17.5 per cent one of the highest levels in recent months signals continued adjustments to inflationary pressures and tighter liquidity in the banking system.
The 91-day and 182-day bills were also oversubscribed, although yields remained below the one-year tenor. The DMO said the outcome underscores robust market confidence in government securities, even as borrowing costs continue to rise.
Traders in the fixed-income market noted that the elevated yields may persist into the first quarter of 2026 as the CBN maintains a contractionary stance to stabilise the naira and curb inflation.
The successful N709.62 billion allotment forms part of government’s short-term financing strategy and is expected to support budget implementation while deepening liquidity in the money market.
Analysts, however, warn that sustained high yields could increase the government’s refinancing burden, even as they provide attractive opportunities for institutional and retail investors in the near term.
