The Central Bank of Nigeria (CBN) raised an estimated N15.3 trillion from the Nigerian Treasury Bills (NTBs) market in 2025 to support the federal government’s effort to bridge its budget deficit, according to data obtained from the apex bank.
The amount represents a 14.8 per cent increase over the N13.3 trillion mobilised from investors in 2024, underscoring the growing reliance on short-term domestic borrowing to plug fiscal gaps.
Treasury bills, issued by the CBN on behalf of the federal government, are regarded as low-risk instruments, primarily used to meet short-term financing needs.
Data obtained from the CBN showed that the total amount offered for subscription in 2025 stood at N12.8 trillion, a sharp 60.2 per cent rise compared with the N7.99 trillion offered in 2024.
Despite the higher volume raised, total investor subscriptions declined, reflecting the impact of lower yields.
Subscriptions in 2025 stood at N36.63 trillion, representing a 5.5 per cent drop from the N38.75 trillion recorded in 2024.
Market data reviewed by THISDAY indicates that the CBN deliberately reduced NTB stop rates in 2025, a move that encouraged significant portfolio rebalancing, with some funds flowing into the Nigerian Stock Market.
At the NTB auction conducted on December 17, 2025, the stop rate on the 91-day bill fell to 15.5 per cent, from 18 per cent in December 2024. The 182-day bill also declined to 15.95 per cent, compared with 18.5 per cent a year earlier. Similarly, the 364-day bill closed at 17.51 per cent, sharply lower than 22.9 per cent recorded in December 2024.
Analysts say the CBN’s strategy reflects a careful balancing act.
By combining tight monetary policy with large NTB auctions, the apex bank aims to rein in inflation and stabilise the foreign exchange market, while gradually easing borrowing costs to attract capital inflows.
The variation in stop rates across tenors offers insight into investor sentiment.
The relatively lower yield on the 182-day bill suggests expectations of interest rate stability in the near term, while the comparatively higher yield on the 364-day bill points to lingering caution over longer-term economic uncertainties.
Overall, the spread of demand across maturities signals strategic positioning by investors and continued confidence in Nigeria’s domestic debt market.
Speaking to THISDAY, an investment banker and stockbroker, Mr. Tajudeen Olayinka, attributed the lower yields to demand-and-supply dynamics, noting that the government intentionally cut NTB stop rates to attract key institutional investors.
According to him, “The essence is to encourage foreign inflows that could help improve dollar liquidity in the foreign exchange market and moderate pressure on the naira until the market attains equilibrium.
“I have no doubt that this is the most appropriate decision by the CBN and the government at this time. There is a clear need to improve dollar liquidity, which will eventually lead to a moderation in domestic interest rates,” he explained.
Kayode Tokede
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