The Nigerian debt capital market witnessed a surge in investor appetite on February 4, 2026, as the Primary Market Auction (PMA) for Nigerian Treasury Bills (NTB) recorded a massive total subscription of N4.59 trillion.
This figure represents an oversubscription of nearly four times the initial N1.15 trillion offered by the Central Bank of Nigeria (CBN).
Ayodeji Ebo, managing director of Optimus by Afrinvest, said that the massive N4.59 trillion subscription reflects tight liquidity management and a strong investor preference for locking in yields above 20 percent while they last.
The oversubscription was higher than the N3.4 trillion seen at the last auction, and now the highest subscription since December 4, 2024, when investors’ demands crossed N5 trillion during peak inflationary and high-interest environment.
The Nigerian Treasury Bill market has seen an increased level of participation amongst players, evident in subscription levels trending above N1 trillion at primary auctions since December 2025.
Analysts at Meristem attribute the increased participation to investors aiming to leverage rising rates.
The auction results showed a flight to yield, with investors favouring longer-dated instruments despite a slight dip in interest rates for those tenors.
The 364-day bill alone attracted N4.39 trillion in subscriptions, far outpacing its N800 billion offer. The CBN eventually allotted N808.78 billion for this tenor.
While the 182-Day tenor bids totalled N123.41 billion against a N200 billion offer, with N80.61 billion allotted.
The 91-day tenor segment saw subscriptions of N66.05 billion for a N150 billion offer, resulting in an allotment of N63.21 billion.
Fahad Ali, bond trader, UBA, explained that the oversubscription seen is as a result of the excess liquidity in the market from coupon payment of maturing T-bills and OMO bills.
Nigeria’s financial system is expected to receive a liquidity boost of about N8.61 trillion in February 2026, largely driven by maturities from Open Market Operations (OMO), Treasury bills (T-bills), and coupon payments on government bond
While demand was highest for the one-year paper, its stop rate actually declined by 1.48 percent to settle at 16.98 percent. However, the true yield for the 364-day bill remained robust at 20.46 percent. Conversely, rates for shorter tenors saw marginal increases, with the 91-day and 182-day stop rates rising to 15.84 percent and 16.65 percent, respectively.
Ebo predicts this trend will gradually filter through the broader fixed-income space, influencing the pricing of future Commercial Papers and money market funds.
Ebo said that while the 364-day softened slightly, it continues to deliver the best yield for investors looking to lock in high returns.
“ Longer-dated bills still offer the most compelling value in the current rate environment,” he said.
The hike in yields will spill over to the secondary market, where retail investors can participate via their banks or mobile apps such as Risevest, Cowrywise, and Bamboo, Meritrade, I-invest among others.