The Central Bank of Nigeria plans to raise N1.05 trillion through a Treasury Bills auction today, March 18, pushing the federal government’s short-term borrowing to nearly N3 trillion over the past two weeks.

An official invitation to tender, issued by the CBN on behalf of the Debt Management Office confirmed the auction.

The notice states that the auction will use the Dutch auction system, where yields are set based on investor demand and current liquidity conditions.

The move highlights the government’s ongoing reliance on domestic debt markets amid mounting fiscal pressures.

In the notice, the Federal Government will offer N1.05 trillion in Treasury Bills across three maturities, with settlement scheduled for the following day.

The breakdown includes N100 billion in 91-day bills, N150 billion in 182-day bills, and N800 billion in 364-day bills, indicating stronger investor appetite for longer-tenor securities.

Primary market dealers must submit bids electronically via the CBN’s Scripless Securities Settlement System (S4) between 8:00 a.m. and 11:00 a.m., with bids in multiples of N1,000 and a minimum subscription of N50.001 million.

Authorized Money Market Dealers may submit multiple bids on behalf of themselves and their clients. Results will be announced the same day, with successful bidders receiving allotment letters on March 19, and payments are due by 11:00 a.m. on the settlement day.

The auction will use the Dutch system, where yields are set according to investor demand and prevailing liquidity, emphasizing the market-driven approach of the issuance.

The CBN issues Treasury Bills on behalf of the Federal Government through the Debt Management Office, which oversees Nigeria’s expanding debt amid a widening fiscal deficit.
Nigeria’s 2026 budget is based on a projected fiscal deficit of N20.12 trillion, highlighting a substantial gap between expected revenues and planned expenditures.

Domestic borrowing is projected to cover about N14.30 trillion, or over 70% of the deficit, underscoring the government’s heavy reliance on local debt markets.

Other funding sources include external loans, multilateral and bilateral financing, and proceeds from privatization and asset sales to help bridge the shortfall.