The Central Bank of Nigeria (CBN) will, on Wednesday, October 22, 2025, conduct its Treasury Bills (T-Bills) Primary Market Auction (PMA), where a total of N650 billion worth of maturing bills will be rolled over.
The maturing bills, being reissued on behalf of the Debt Management Office (DMO), will be offered across three maturities:
N100 billion for the 91-day tenor,
N100 billion for the 182-day paper, and
N450 billion for the 364-day instrument.
This reissuance forms part of the government’s regular short-term borrowing programme aimed at managing liquidity in the financial system.
Bidding Guidelines and Participation Rules
According to the CBN, the sale will be conducted via a Dutch auction—a competitive bidding process in which investors submit their preferred interest rates, and the final stop rate is determined by overall demand and market dynamics.
By rolling over maturing bills, the government is not raising new debt, but rather refinancing existing obligations.
The CBN further stated that authorized Money Market Dealers are to submit bids electronically through the CBN S4 Web Interface between 8:00 a.m. and 11:00 a.m. on Wednesday, October 22, 2025.
Each bid must:
Be in multiples of ₦1,000, and
Have a minimum investment of ₦50,001,000.
Dealers are permitted to place bids on behalf of non-dealer clients—including corporates, fund managers, and interested members of the public—thereby offering indirect access to retail investors seeking low-risk instruments.
The apex bank also clarified that dealers may submit multiple bids at different rates, allowing greater flexibility in investment choices.
Auction results will be announced on Wednesday, October 22, a day before settlement.
Successful bidders will receive allotment letters on Thursday, October 23, and must make payment for allotted amounts into their CBN accounts no later than 11:00 a.m. that same day.
The CBN reserves the right to reject or adjust bids based on prevailing market conditions.
Market Outlook and Economic Implications
Analysts expect the October auction to attract strong demand, particularly for the 364-day bills, which traditionally offer higher yields due to their longer duration.
The CBN’s decision to roll over rather than expand the issuance size reflects a cautious approach to liquidity management. By maintaining the N650 billion offer size, the Bank seeks to avoid excessive money supply that could worsen inflationary pressures, while still meeting short-term government financing needs.
Market watchers will closely monitor the stop rates—the final accepted interest rates for each tenor—as indicators of investor sentiment and the direction of short-term yields.
Given current market dynamics, analysts anticipate moderate downward adjustments in yields to reflect easing monetary policy and declining inflationary pressures.
Balancing Liquidity and Stability
The October 22 auction highlights the CBN’s continued reliance on Treasury Bills as a critical tool for liquidity control and fiscal support.
For investors, the exercise provides another opportunity to lock in steady, low-risk returns amid ongoing inflation and currency volatility.
As the auction date approaches, attention will center on the level of investor demand and the final stop rates at which the market clears.
Key Takeaways
Offer Breakdown: ₦100 billion (91-day), ₦100 billion (182-day), ₦450 billion (364-day).
Previous Stop Rates: 15.00% (91-day), 15.25% (182-day), 15.77% (364-day).
Significance: Auction outcome will help guide short-term interest rates and market sentiment into Q4 2025.
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