The Central Bank of Nigeria (CBN) has announced plans to conduct another round of Treasury Bills (T-Bills) auction on Wednesday, October 22, 2025, with a total of N650 billion worth of maturing bills scheduled for rollover.
According to the apex bank, the sale will be carried out through a Primary Market Auction (PMA) on behalf of the Debt Management Office (DMO) as part of the federal government’s short-term borrowing programme aimed at managing liquidity in the economy.
The offer will be divided into three maturity periods: N100 billion for 91-day bills, N100 billion for 182-day bills, and N450 billion for 364-day bills.
The CBN explained that the auction will use a Dutch auction system, where investors submit bids indicating the interest rates they are willing to accept, after which the final “stop rates” will be determined by market demand.
The Bank clarified that the rollover of maturing bills does not amount to fresh borrowing but represents the refinancing of existing obligations.
Guidelines for Bidders
According to the CBN, all authorized Money Market Dealers are expected to submit their bids electronically through the CBN S4 Web Interface between 8:00 a.m. and 11:00 a.m. on the auction day. Each bid must be in multiples of N1,000, with a minimum subscription of N50,001,000.
The statement added that Money Market Dealers can also bid on behalf of their clients — including corporations, fund managers, and retail investors — who seek to invest indirectly in T-Bills.
Dealers are permitted to submit multiple bids at different interest rates, which allows investors to diversify their yield expectations across the different tenors.
The results of the auction will be released on the same day, Wednesday, October 22, while successful bidders are expected to receive their allotment letters on Thursday, October 23. Payment for the allotted amounts must be made into bidders’ CBN accounts no later than 11:00 a.m. on the settlement day.
The apex bank also reserved the right to reject or adjust bids depending on market conditions, underscoring its flexibility in managing monetary policy.
Market Reactions and Outlook
Financial analysts expect the auction to attract strong investor interest, particularly in the 364-day bills, which usually offer the highest yields due to their longer maturity.
Market watchers noted that the CBN’s decision to roll over existing maturities instead of expanding the issuance volume shows a cautious approach to liquidity management. By keeping the total offer at N650 billion, the Bank aims to control the amount of money in circulation, limit inflationary pressure, and still support the government’s short-term financing needs.
Analysts also noted that investors will pay close attention to the stop rates — the final accepted rates for each maturity — as they often provide a clear signal on market sentiment and short-term yield direction.
The previous auction stop rates were 15.00% for the 91-day bills, 15.25% for the 182-day bills, and 15.77% for the 364-day bills. Market experts predict that rates might witness moderate downward adjustments this time due to easing monetary policy and gradual improvement in inflation figures.
Balancing Liquidity and Economic Stability
The October 22 auction highlights the CBN’s continued reliance on Treasury Bills as a key monetary tool for balancing liquidity in the financial system.
For investors, it represents another opportunity to earn steady and low-risk returns amid ongoing inflationary and currency challenges.
T-Bills remain popular among institutional and retail investors due to their government backing and low default risk. In addition, they play a vital role in determining short-term interest rates and guiding broader market trends.
As the auction date approaches, both investors and market analysts will be monitoring demand levels and yield movements to gauge overall confidence in the economy heading into the last quarter of 2025.
