FG plans N5.4 trillion Treasury bill offers in Q4, targets N4.1 trillion in one-year bills

The Federal Government plans to offer N5.40 trillion in Nigerian Treasury Bills (NTBs) between October and December 2026, with approximately three-quarters of the amount concentrated in 364-day bills.

This is according to the Q4 2026 NTB Issue Programme released on Tuesday, October 13, by the Central Bank of Nigeria (CBN) in conjunction with the Debt Management Office (DMO) and analysed by Nairametrics.

The programme allocates N4.10 trillion, representing 75.93% of total planned offers, to 364-day bills, while the 91-day and 182-day tenors receive N650 billion each, or approximately 12.04% apiece.

At the first Q4 NTB Primary Market auction conducted on October 7, DMO in conjunction with the CBN allotted N968.47 billion, exceeding its N900 billion offer with the 364-day stop rate declining to 15.85%.

The planned N5.40 trillion issuance is slightly below the N5.429 trillion in Treasury bills scheduled to mature during the quarter. This leaves a planned net reduction of approximately N29.27 billion, indicating that the programme is largely structured around refinancing existing obligations.

Planned offers cover approximately 99.46% of maturing principal, although the distribution across tenors differs.

The figures suggest that the Federal Government intends to maintain a strong preference for one-year Treasury bills during the final quarter of 2026.

However, the offer amounts remain subject to change. Actual issuance and net borrowing will depend on allotments rather than the amounts initially advertised in the calendar.

The Q4 issuance programme is unevenly distributed, with October accounting for the largest monthly offer amount. Planned offers exceed maturities in October but fall below maturing obligations in both November and December.

The next scheduled auction is October 14, with N450 billion on offer, comprising N50 billion each in 91-day and 182-day bills and N350 billion in 364-day bills. With N80.84 billion maturing for settlement on October 15, full allotment of the N450 billion offer would imply net absorption of approximately N369.16 billion.

The Q4 programme represents a shift from the third quarter (Q3) when DMO targeted N5.80 trillion in gross Treasury bill issuance against approximately N2.64 trillion in maturities. That earlier programme implied net new issuance of about N3.16 trillion, compared with the near-balanced position planned for Q4.

Investors seeking to reinvest large November and December maturities may face fewer scheduled offers than the amounts maturing during those months. The programme covers only Treasury bills and does not establish the Federal Government’s overall net borrowing position, which also depends on bond issuance, other financing instruments and actual auction allotments.

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