The Central Bank of Nigeria (CBN) has successfully raised N8.14 trillion through its Treasury bills (T-bills) issuances during the third quarter of 2026, significantly exceeding the target set by the Debt Management Office (DMO) of N5.8 trillion by N2.34 trillion. This remarkable performance highlights the strong demand from investors for government securities during this period.

A detailed review of the eight T-bills auctions conducted between July and September revealed that the total allotments were 40.34 percent higher than the planned issuance for the quarter. This surge in investor interest can be attributed to the attractive yields available in the market, particularly in July and August, which encouraged more participation in government borrowing.

The 364-day Treasury bill was the standout performer, accounting for the majority of the funds raised, with N7.09 trillion allocated, representing 87 percent of the total allotments during this quarter. The concentration of borrowing in this one-year instrument underscores the prevailing investor sentiment towards longer-term securities amid a favorable yield environment.

However, the trend shifted towards the end of September as the CBN implemented changes in its monetary policy. The bank lowered stop rates across all three tenors of T-bills, resulting in a decrease in yields. Notably, the stop rate for the 364-day bill fell to 15.89 percent during the auction held on September 23, down from a quarterly high of 17.70 percent recorded on July 8. This decline in yields reflects a broader change in borrowing costs in the primary T-bills market over the quarter, with a reduction of 181 basis points.

The strong performance of T-bills in Q3 2026 indicates a robust appetite for government securities among investors, despite the recent adjustments in monetary policy. As the CBN continues to navigate the complexities of the financial landscape, the ongoing demand for T-bills will be crucial in shaping its borrowing strategy and managing the nation's debt effectively.