Nigeria Nets ₦1.1 Trillion in First 2026 Treasury Bills Auction
First Nigeria Treasure Bills 2026
Nigeria’s Debt Management Office (DMO) has secured ₦1.144 trillion from its first Treasury Bills auction of 2026, held on 7 January, underscoring robust investor appetite for government securities despite elevated interest rates.
Breakdown of Auction Results
91-day bill: ₦108.17 billion
182-day bill: ₦48.23 billion
364-day bill: ₦987.78 billion
The one-year paper dominated, with allotments exceeding the ₦800 billion initially offered. Total subscriptions reached approximately ₦1.38 trillion, highlighting abundant liquidity in the financial system
Rising Stop Rates and Investor Strategy
Stop rates climbed across all tenors, with the 364-day bill closing at 18.47%, marking the sharpest increase. Analysts note that investors are locking in longer-dated instruments to hedge against inflation and reinvestment risks. Elevated yields continue to position government securities as a safe haven in Nigeria’s high-interest-rate environment
Global Context
The auction coincided with the United Nations’ World Economic Situation and Prospects 2026 report, which projects global economic output to grow by 2.7%, slightly below last year’s 2.8% and well below the pre-pandemic average of 3.2%
Policy Implications
The outcome of the auction demonstrates:
Strong investor confidence in Nigerian debt instruments.
Government reliance on domestic borrowing to manage fiscal pressures.
Potential upward repricing of risk-free assets, particularly at the long end of the curve.
Conclusion
Nigeria’s first Treasury Bills auction of 2026 reflects resilient demand and investor preference for longer maturities, despite higher yields. The results reinforce government securities’ role as a stabilising instrument in a volatile macroeconomic environment. Future auctions will likely continue to test investor appetite as fiscal and monetary authorities balance inflationary pressures with funding needs.
