DMO to Auction N800 Billion in Treasury Bills on Nov 11

The Debt Management Office (DMO) is set to offer N800 billion in Nigerian Treasury Bills at its auction on November 11, 2026, to refinance N148.565 billion in maturing securities. This creates a potential net funding requirement of approximately N651.44 billion.

The auction will be conducted through a Dutch auction, with settlement scheduled for November 12. Recent auctions have seen the DMO accepting significantly less than the amount investors bid while maintaining low stop rates.

The N800 billion offer is about 5.4 times the maturing Treasury Bills, indicating a substantial gross issuance beyond refinancing needs. The DMO's selective allotment strategy has been evident in previous auctions, where it allotted only N71.16 billion against N1.84 trillion in bids on October 28.

The upcoming auction will further test the DMO's approach to balancing funding requirements with borrowing costs, especially given the current high liquidity in Nigeria's banking system, which increased by 15.36% to N8.505 trillion.