FG plans N5.4tn T-bill sales, favours one-year debt

Politics Spice Special Features Education Sex & Relationship Interview Columns Opinion Advertise with us FG plans N5.4tn T-bill sales, favours one-year debt Money October 15, 2026 12:08 am By Odinaka Anudu Kindly share this story:

The Federal Government is planning to issue N5.40tn trillion in Nigerian Treasury Bills between October and December 2026, with nearly 76 per cent of the proposed sales concentrated in securities that mature after one year.

The issuance plan, published by the Central Bank of Nigeria and the Debt Management Office on 13 October, allocates N4.10tn to 364-day bills, while the 91-day and 182-day instruments will each receive N650bn.

The large share allocated to one-year bills shows that the government plans to rely more on them to repay maturing debt, although the amount it raises will depend on investor demand at the auctions.

The planned issuance is marginally below the N5.43tn0 in T-bills scheduled to mature during the quarter, implying a potential net reduction of about N29.27bn if the government sells the full amount and all maturities occur as scheduled.

T-bills are short-term government securities used to raise funds, manage cash flow and refinance existing debt. Their maturity periods range from 91 days to 364 days.

The 364-day bills account for 75.93 per cent of the proposed N5.40tn issuance, leaving about 24 per cent for securities with shorter maturities.

The government plans to offer N650bn each in 91-day and 182-day bills, representing approximately 12.04 per cent of the total allocation for each tenor.

The distribution varies from the maturity profile of existing securities. Planned 182-day issuance exceeds maturities by N187.30bn, while offers of 91-day and 364-day bills fall short of their respective maturities by N72.39bn and N144.18bn.

The figures suggest that the government intends to maintain a strong emphasis on one-year bills while adjusting the amounts offered across shorter maturities.

The quarterly calendar is weighted towards October, when the government plans to offer N2.15tn against maturities of N1.31tn.

This creates a potential excess of N839.91bn in offers over maturing bills for the month, assuming full allotment.

The position reverses in the remaining months. November’s planned issuance of N1.60tn is below maturities of N1.92tn, while December’s N1.65tn offer falls short of N2.20tn in maturing obligations.

November and December therefore account for most of the quarter’s expected reduction in T-bill principal outstanding.

The largest single maturity is N1.108tn scheduled for 18 November, while other substantial repayments fall due on 2, 9 and 16 December.

The next scheduled auction, on 14 October, has N450bn billion: N50bn each in 91-day and 182-day bills, and N350bn in 364-day bills. With N80.84bn due for settlement on 15 October, full allotment would imply a net absorption of approximately N369.16bn around that settlement date.

The planned N5.40tn issuance represents a reduction from the N5.80tn scheduled for the third quarter of 2026.

The maturity schedule could influence how investors reposition their portfolios during the final months of the year.

Investors receiving proceeds from maturing T-bills in November and December may find that scheduled offers are smaller than the principal being repaid in those months. The extent to which this affects reinvestment opportunities will depend on actual auction allotments and demand for government securities.

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