The Central Bank of Nigeria (CBN) is set to conduct its next Treasury Bills (T-Bills) Primary Market Auction (PMA) on Wednesday, October 22, 2025, where it plans to refinance ₦650 billion worth of maturing bills.
According to the apex bank, the reissuance undertaken on behalf of the Debt Management Office (DMO)will be distributed across three tenors: ₦100 billion in 91-day bills, ₦100 billion in 182-day paper, and ₦450 billion in 364-day instruments. The exercise is part of the government’s regular short-term borrowing programme aimed at managing market liquidity.
The sale will be executed through a Dutch auction, a competitive process where investors submit bids specifying their desired interest rates. The final stop rate is then determined by overall demand and prevailing market conditions. By rolling over existing maturities rather than expanding total issuance, the government will be refinancing current obligations instead of taking on new debt.
Bidding Process and Participation Rules
The CBN stated that only authorized Money Market Dealers are permitted to submit bids electronically via the CBN S4 Web Interface between 8:00 a.m. and 11:00 a.m. on auction day. Bids must be made in multiples of ₦1,000, with a minimum subscription of ₦50.001 million.
Dealers are also allowed to place bids on behalf of non-dealer clients, such as corporations, fund managers, and retail investors, thereby providing indirect access for individuals seeking low-risk investment opportunities.
Participants may submit multiple bids at varying rates, offering flexibility in aligning investment preferences with expected returns.
Auction results will be published later on Wednesday, October 22, while successful bidders will receive allotment letters the following day, Thursday, October 23. Payments for allotted amounts must be made to participants’ CBN accounts no later than 11:00 a.m. that same day. The Bank reserved the discretion to reject or adjust bids in response to market conditions.
Market Outlook and Policy Implications
Analysts anticipate strong investor interest in the 364-day paper, which traditionally offers higher yields. The CBN’s decision to maintain the total offer size at ₦650 billion underscores a measured liquidity management approach, aimed at supporting short term government financing needs without injecting excessive cash into the economy.
This strategy aligns with efforts to balance inflation control with financial system stability, especially as monetary policy continues to ease and inflation shows signs of moderating.
Market participants will closely watch the stop rates the final accepted yields across tenors as indicators of investor sentiment and potential shifts in short-term interest rate trends. Analysts expect modest downward adjustments in yields, reflecting reduced inflationary pressures and a gradual softening of monetary policy.
Balancing Liquidity and Stability
The upcoming auction highlights the CBN’s continued reliance on Treasury Bills as a key instrument for liquidity control and fiscal management. For investors, the auction presents another opportunity to secure stable, low-risk returns in a market still navigating inflation and exchange rate volatility.
Market attention will focus on the demand levels and pricing outcomes, as these will provide further insight into investor appetite and short-term yield direction heading into the final quarter of 2025.
Key Highlights
Offer Size: ₦650 billion total — ₦100bn (91-day), ₦100bn (182-day), ₦450bn (364-day)
Auction Date: Wednesday, October 22, 2025
Previous Stop Rates: 15.00% (91-day), 15.25% (182-day), 15.77% (364-day)
Objective: Liquidity management and refinancing of maturing obligations
Expected Impact: Guide short-term yields and market sentiment into Q4 2025
