CBN cuts T-bill rate amid N3.63tn demand

This demand represented 95.9 percent of the total N3.79tn bids across all three maturities offered at the primary market auction. The CBN had offered N700bn in total, with N500bn allocated to the 364-day bill, but ultimately allotted N638.19bn for this longer-dated security. This indicates a strong investor preference for longer-term returns, even with a reduced rate.

In contrast, shorter-term bills saw less demand, with the 91-day bill attracting N103.32bn in subscriptions and the 182-day bill only N52.93bn against N100bn offers for each. Financial sector analyst Jimbe Asalor noted that this concentration of bids allows the CBN to borrow more cheaply, while economist Chukwunonso Iheoma suggested that a sustained preference for longer-dated treasury bills could lead to a gradual decline in government borrowing costs and potential interest rate cuts.