CBN allots N8.14 trillion in T-Bills, exceeding Q3 target by 40%

ABUJA, Nigeria — The Central Bank of Nigeria allotted N8.14 trillion across eight Treasury Bill auctions in the third quarter, surpassing its N5.8 trillion quarterly target by more than N2.3 trillion.

Kanyi Daily reports that the overshooting reflected overwhelming demand for the 364-day instrument, which alone attracted N7.086 trillion in allotments against N3.8 trillion offered between July and September 2026.

The quarter displayed two distinct phases. Through July and August, the CBN allotted well above advertised offer sizes as the one-year rate climbed to a Q3 peak of 17.70 percent on July 8. By late September, demand moderated sharply as rates declined. The 364-day stop rate fell to 15.89 percent by September 23, a cumulative drop of 181 basis points from the quarter’s peak.

On July 8 and 15, the CBN allotted N1.06 trillion and N1.191 trillion respectively against offers of N700 billion and N600 billion. The July 29 and August 12 auctions produced the largest overshoots, with allotments of N1.25 trillion and N1.456 trillion respectively. By September 23, following a 350-basis-point monetary policy rate cut the previous day, allotments fell below the offered amount for the first time that quarter, with the CBN allotting N497.59 billion against N750 billion offered.

The 364-day bill dominated activity, accounting for roughly 87 percent of total allotments across the eight auctions. The 91-day instrument attracted N722.39 billion in allotments against N850 billion offered, while the 182-day bill recorded N333.39 billion against N800 billion offered.

The Debt Management Office had targeted N5.8 trillion in gross issuance for Q3, comprising N900 billion each in 91-day and 182-day bills and N4 trillion in 364-day bills. The actual allotment exceeded this by nearly 40 percent, even before including a September 16 auction whose figures could not be independently confirmed.

The quarter’s volatility reflected the CBN’s dual role: meeting government financing requirements while managing liquidity in the financial system. A N5.21 trillion net liquidity injection in the week of August 12 coincided with heavy bidding that pushed the one-year rate to 17.59 percent despite an offer of only N700 billion.

The shift toward monetary easing in late September reshaped demand dynamics. Allotments moderated from N1.054 trillion on September 9 to N497.59 billion two weeks later as investors repositioned for lower rates.