The Central Bank of Nigeria (CBN) will auction N290 billion worth of Treasury Bills (T-Bills) on Wednesday at its second Primary Market Auction (PMA) for September 2025, marking a decline from the N480 billion offered at the previous auction.
The T-bills will be offered across three maturities: N30 billion for 91-day bills, N60 billion for 182-day bills, and N200 billion for 364-day bills.
Analysts at Meristem Research expect bullish investor sentiment, citing the strong performance of the previous auction on September 3, 2025.
The CBN offered N480 billion, with total subscriptions surging to N1.01 trillion, more than double the offer and exceeding the previous N396.42 billion subscription. The bid-to-cover ratio improved to 1.73x, while the subscription-to-offer ratio rose to 2.11x, supported by robust system liquidity of N1.47 trillion as of September 2, 2025,” they said.
During the last auction, stop rates varied slightly: the 364-day bill rose by 25bps to 17.69%, the 91-day eased slightly to 15.32%, and the 182-day remained at 15.50%, reflecting investors’ preference for longer tenors and the government’s strategy to spread borrowings over time.
Meristem analysts added that the secondary market sentiment remained bullish, with yields declining across the curve for short- and mid-tenor bills, while long-dated instruments saw a slight increase. Overall, the average T-bill yield held at 18.76% as of September 15, 2025.
Looking ahead to today’s auction, analysts said:
“We expect stop rates to moderate across all maturities, driven by strong investor demand and robust system liquidity of N2.46 trillion as of September 16, supported by OMO maturities of N204.87 billion.
“The absence of 364-day maturities provides short-term relief at the long end, resulting in a strong liquidity-to-offer coverage of 5.12x. Additionally, the sustained decline in inflation (20.12% in Aug vs. 21.88% in Jul) supports prospects for lower yields. Overall, we anticipate healthy subscription levels and a downward adjustment in stop rates across the curve.”
