Banks park ₦6.98 trillion as CBN offers ₦800 billion

ABUJA, Nigeria — The Central Bank of Nigeria will offer ₦800 billion in Nigerian Treasury Bills on Wednesday, October 28, 2026, acting for the Debt Management Office. The auction comes as banks’ placements at the Central Bank’s Standing Deposit Facility reached ₦6.98 trillion on Tuesday, October 27.

The offer is split across three tenors: ₦100 billion in 91-day bills, ₦100 billion in 182-day bills and ₦600 billion in 364-day bills. The one-year bill makes up 75% of the offer. The auction will be conducted through a Dutch auction.

The Financial Markets Dealers Association projects total inflows of ₦2.813 trillion into the financial system this week. Most of that, about ₦2.408 trillion, is expected from maturing Open Market Operation bills. Federal Government bond coupon payments are expected to add ₦263.58 billion, and maturing Treasury Bills ₦130.72 billion. Corporate bond coupons would contribute ₦10.92 billion.

On Tuesday, the Central Bank settled ₦2.132 trillion in Open Market Operation maturities and ₦53.49 billion in primary market maturities. System liquidity rose 10.39% week on week to ₦6.936 trillion in the week ended October 23.

Projected weekly inflows are slightly below the previous week’s ₦2.858 trillion. The difference is mainly the absence of a Federation Account Allocation Committee distribution this week, after a ₦2.43 trillion distribution the week before. Open Market Operation maturities, however, are ₦341 billion higher than the ₦2.067 trillion recorded the week before.

Treasury Bills maturing on October 29 total ₦130.72 billion. If the full ₦800 billion is allotted, the auction would absorb about ₦669.28 billion more than those maturities release.

The one-year bill has been in strong demand. At the October 7 auction, the Debt Management Office allotted ₦968.47 billion against an advertised ₦900 billion, and the one-year stop rate fell to 15.85%. At the October 14 auctions, it accepted ₦269.06 billion out of ₦1.032 trillion in subscriptions, rejecting about 74% of bids. The one-year rate rose to 15.90%, its first increase since August.