Debt Management Office (DMO) sold treasury bills (T-bills) valued at N477 billion in August, representing a three per cent decline compared to the N491.8 billion raised in July 2025.

The N14.78 billion month-on-month reduction indicates a slight easing in the government’s short-term funding appetite or demand-driven adjustments in the auction calendar.

Similarly, the DMO conducted bond auctions that raised N136.16 billion through Federal Government of Nigeria (FGN) Bonds. This figure represents a 26.8 per cent decrease from the N185.9 billion recorded in July 2025, a drop of N49.8 billion.

Despite the lower issuance volumes, appetite for sovereign securities remained robust throughout the month. T-bills were oversubscribed by an impressive 142.18 per cent, while FGN Bonds recorded an oversubscription rate of 34.08 per cent, signaling strong investor confidence and sustained demand for government-backed instruments.

The Central Bank of Nigeria (CBN) was also active in the open market operations (OMO) space, selling OMO bills valued at N2.1 trillion. This, however, represented a sharp 24.16 per cent decline from July’s OMO sales of N2.8 trillion, reflecting a reduction of N676 billion month-on-month.

Still, investors’ interest remained extremely high, with the OMO offerings oversubscribed by a substantial 267.14 per cent, underscoring the attractiveness of the instruments for liquidity management and yield-hunting investors.

In contrast, activity in the non-sovereign debt market slowed considerably. There were no new listings or redemptions of Non-Sovereign Bonds on the FMDQ Exchange during August 2025. As a result, the total outstanding value of Non-Sovereign Bonds remained unchanged at N2.2 trillion.

Quoted Commercial Paper (CP) activity saw a steep decline in August. The total value of CPs quoted on the FMDQ Exchange dropped sharply by 86.28 per cent to N43.6 billion, down from N317.9 billion in July, a contraction of N274.3 billion.

This decline suggests a pullback in short-term corporate borrowing or a strategic pause by issuers amid market uncertainty or shifting interest rate expectations.

Only seven CPs were quoted during the period, with the financial services sector accounting for the largest share of issuances, contributing three out of the seven total.