Nigeria Raises N227.5bn in T-Bills Amid Strong Investor Demand Across All Tenors

Nume Ekeghe

The federal government raised N227.5 billion at its latest auction of Nigerian Treasury Bills (NTBs), held on September 25, amid robust demand from investors across all tenors.

The Debt Management Office (DMO) offered a total of N227.54 billion spread across the 91-day, 182-day, and 364-day tenors, with subscription levels significantly surpassing the amount on offer, totalling N304.27 billion.

The 364-day tenor was the standout in terms of investor interest, attracting N250.42 billion in bids against an offer of N173.81 billion. A total of N177.10 billion was eventually allotted at a stop rate of 20.000 per cent, with bid rates ranging between 17.65 per cent and 23.28 per cent. This level of interest underscored the prevailing appetite for longer-dated instruments in the current interest rate environment, where investors appear increasingly drawn to locking in higher returns amid inflationary pressures.

The 182-day bills witnessed a more tempered reception, but still reflected strong participation, with N23.19 billion in subscriptions, compared to the N25.58 billion on offer. The allotment for this tenor stood at N23.09 billion, at a stop rate of 17.50 per cent, with bids ranging from 16.75 per cent to 20 per cent. While demand for this mid-term tenor was more modest than that of the 364-day bill, the competitive bidding indicated solid investor confidence.

On the short end, the 91-day bills garnered a subscription of N30.65 billion against an offer of N28.15 billion, resulting in an allotment of N27.35 billion at a stop rate of 17 per cent. The bid yields for the shortest tenor ranged from 15.75 per cent to 19 per cent, reflecting the ongoing demand for short-term liquidity instruments.

The final allotments maturity was scheduled for December 26, 2024 (91-day), March 27, 2025 (182-day), and September 25, 2025 (364-day), respectively.

The strong demand seen across all tenors was a testament to sustained investor confidence in Nigerian government securities, despite the broader macroeconomic challenges facing the country, including persistent inflationary pressures and currency volatility. The elevated stop rates, particularly for the longer-dated instruments, reflected the risk premium investors were seeking, amid a landscape where inflation had become a central concern. Furthermore, the auction’s outcome indicated the continued attractiveness of government debt as a stable and high-yielding investment avenue for both domestic and foreign investors.