The Central Bank of Nigeria (CBN), on behalf of the Debt Management Office (DMO), is set to offer N700 billion worth of Nigerian Treasury Bills (NTBs) across three tenors at its first auction for September 2026.

The offer comprises N100 billion for the 91-day bill, N100 billion for the 182-day bill and N500 billion for the 364-day bill, according to the Invitation to Tender obtained by Nairametrics.

The auction is scheduled for Wednesday, September 2, 2026, with all Money Market Dealers required to submit bids through the CBN S4 Web Interface between 8:00 a.m. and 11:00 a.m.

The auction result is expected to be released on the same day, while allotment letters will be issued on Thursday, September 3.

Successful bidders are required to make payment to the CBN not later than 11:00 a.m. on the allotment date.

The CBN said each bid must be in multiples of N1,000, subject to a minimum bid of N50,001,000.

It added that dealers may submit multiple bids on their own account or on behalf of non-Money Market Dealers and members of the public.

The apex bank also reserved the right to reject any bid or vary the amount offered depending on prevailing market conditions.

The September 2 auction is one of the final three NTB auctions under the Q3 2026 programme, through which the DMO and CBN plan to issue a total of N5.8 trillion in Treasury Bills between July and September.

The programme consists of N900 billion in 91-day bills, N900 billion in 182-day bills and N4 trillion in 364-day bills.

The 364-day instrument accounts for about 69 per cent of the planned issuance, making it the dominant tenor under the programme.

Treasury Bills worth N2.644 trillion are scheduled to mature during the quarter. After accounting for the maturities, the programme implies estimated net new borrowing of about N3.16 trillion.

The CBN had initially scheduled major N700 billion auctions for July 8, July 29, August 5, August 12, August 26 and September 2.

However, the August 5 auction was cancelled after back-to-back Open Market Operations sales had already withdrawn substantial liquidity from the financial system.

The Q3 programme also recorded two notable liquidity gaps on July 22 and August 19, when Treasury Bills worth N378.43 billion and N429.23 billion, respectively, matured without corresponding new issuance.

The maturities temporarily released liquidity into the banking system, prompting the CBN to return to the market through subsequent Treasury Bill auctions to absorb excess liquidity.

At the August 12 auction, investors submitted bids worth N4.4 trillion against the N700 billion advertised, highlighting strong demand for government securities.

The 364-day bill accounted for N4.19 trillion of the total bids, while its stop rate increased by 24 basis points to 17.59 per cent.

At the subsequent August 26 auction, however, the CBN reduced the stop rate on the one-year bill by 44 basis points to 17.15 per cent after raising the rate at the August 12 auction.

With the August 12 and August 26 auctions combined, the CBN allotted N2.218 trillion against a total advertised offer of N1.4 trillion for the two auctions.

The significant over-allotment has reinforced expectations that the apex bank is using Treasury Bills as an important tool for managing liquidity and influencing monetary conditions, particularly through the heavily subscribed 364-day tenor.

Analysts have also raised concerns about the economic cost of maintaining elevated interest rates to attract foreign portfolio investments.

The Chief Executive Officer of Wyoming Capital Partners Limited, Mr Tajudeen Olayinka, warned that sustaining high interest rates for the purpose of attracting foreign portfolio inflows could impose significant costs on the economy.

Similarly, the Chief Executive Officer of ECL Asset Management Limited, Mr Charles Fakrogha, said the Q3 NTB programme reflected deliberate efforts to manage money supply, inflation and exchange-rate stability.

The September 2 auction is expected to attract significant market attention, particularly amid expectations that the CBN could begin cutting interest rates at its September Monetary Policy Committee meeting.

Consequently, the outcome of the auction could provide an early indication of the apex bank’s monetary policy direction ahead of the MPC meeting.

Market participants will be watching whether the CBN continues its recent pattern of allotting substantially above advertised amounts or adopts a more conservative approach as it concludes the N5.8 trillion Q3 Treasury Bill programme.

The auction will also be closely monitored for changes in stop rates and investor demand, particularly for the 364-day bill, which has remained the dominant instrument in the CBN’s recent liquidity-management operations.