CBN Secures N15.3 Trillion Through Treasury Bills to Address 2025 Deficit

The Central Bank of Nigeria (CBN) has successfully raised an estimated N15.3 trillion from the Nigerian Treasury Bills (NTBs) market in 2025. This significant amount aims to support the federal government in bridging its budget deficit. According to data from the CBN, this figure marks a 14.8 percent increase from the N13.3 trillion mobilised in 2024, highlighting the growing dependence on short-term domestic borrowing for fiscal stability.

Treasury bills, issued by the CBN on behalf of the federal government, are considered low-risk investment instruments primarily used to address short-term financing needs. In 2025, the total amount offered for subscription reached N12.8 trillion, a notable increase of 60.2 percent compared to the N7.99 trillion offered in the previous year.

Despite the increase in the amount raised, total investor subscriptions declined. In 2025, subscriptions totaled N36.63 trillion, reflecting a 5.5 percent drop from the N38.75 trillion recorded in 2024. This decline indicates a shift in investor sentiment, influenced by lower yields in the NTB market.

Market Strategies and Investor Sentiment

Market data indicates that the CBN intentionally reduced NTB stop rates in 2025, a strategy that encouraged a significant reallocation of portfolios, with some funds transitioning to the Nigerian Stock Market. For instance, during the NTB auction held on December 17, 2025, the stop rate for the 91-day bill fell to 15.5 percent, down from 18 percent in December 2024. Similarly, the 182-day bill decreased to 15.95 percent, compared to 18.5 percent a year prior, while the 364-day bill closed at 17.51 percent, significantly lower than 22.9 percent in December 2024.

Analysts describe the CBN’s approach as a careful balancing act. By combining a tight monetary policy with substantial NTB auctions, the bank aims to control inflation and stabilize the foreign exchange market. At the same time, it seeks to gradually ease borrowing costs to attract more capital inflows. The variation in stop rates across different maturities reflects investor expectations, with the relatively lower yield on the 182-day bill suggesting stability in interest rates in the near term. In contrast, the higher yield on the 364-day bill indicates ongoing caution regarding longer-term economic uncertainties.

Mr. Tajudeen Olayinka, an investment banker and stockbroker, discussed the factors influencing the lower yields. He attributed the decline to the dynamics of supply and demand, noting that the government’s intentional reduction of NTB stop rates aimed to attract key institutional investors.

“The essence is to encourage foreign inflows that could help improve dollar liquidity in the foreign exchange market and moderate pressure on the naira until the market attains equilibrium. I have no doubt that this is the most appropriate decision by the CBN and the government at this time. There is a clear need to improve dollar liquidity, which will eventually lead to a moderation in domestic interest rates,” Olayinka stated.

As the CBN continues to navigate these fiscal challenges, the outcome of its strategies will play a crucial role in shaping Nigeria’s economic landscape in the coming years. The reliance on Treasury bills reflects not only the current financial environment but also the broader implications for investors and the overall market stability.