The Central Bank of Nigeria (CBN) has unveiled plans to issue N2 trillion
worth of Treasury Bills (T-bills) in July 2026, marking the largest monthly T-
bill issuance of the year.
With only N647.79 billion in existing Treasury Bills scheduled to mature during
the month, the programme will result in a net liquidity withdrawal of
approximately N1.35 trillion from the banking system.
The July issuance forms the first phase of the CBN’s third-quarter (Q3)
Treasury Bills programme, under which the apex bank intends to raise N5.8
trillion between July and September. Against maturities of N2.64 trillion over
the same period, the programme implies net new borrowing of about N3.16
trillion, highlighting the government’s continued reliance on the domestic debt
market.
The first auction is scheduled for July 8, when the CBN will offer N700 billion
across three tenors: N100 billion in 91-day bills, N100 billion in 182-day bills,
and N500 billion in 364-day bills.
On the same day, Treasury Bills worth N269.36 billion will mature, resulting in
a net liquidity withdrawal of approximately N430.64 billion.
Subsequent auctions will take place on July 15 and July 29, with N600 billion
and N700 billion offered respectively. No auction is scheduled for July 22,
although N378.43 billion in Treasury Bills will mature on that date, providing a
temporary liquidity boost before the end-of-month auction absorbs much of the
funds back into the financial system.
The stop rates for the July auctions remain unchanged from the previous sale,
with the 91-day bill at 16.28 percent, the 182-day bill at 16.50 percent, and the
364-day bill at 17.34 percent.
The CBN uses Treasury Bills as a key monetary policy instrument to manage
liquidity, curb inflation, and maintain stability in the financial system.
By issuing more securities than the amount maturing, the bank effectively
removes excess cash from circulation, reducing liquidity available within the
banking sector.
While the strategy supports the CBN’s inflation-control efforts, it could also
keep short-term interest rates elevated and increase funding costs for businesses
and households. Banks may become more cautious in extending credit as they
allocate more funds to government securities, potentially limiting private sector
lending.
Overall, the July issuance underscores the CBN’s commitment to tightening
monetary conditions while simultaneously supporting government financing
needs. The programme is expected to shape Nigeria’s fixed-income market
throughout the third quarter, with investors closely monitoring demand and
yield movements in the coming auctions.