CBN Rate Cut Drives Down Nigeria's Treasury Bill Rates

On September 25, Treasury bill stop rates in Nigeria fell sharply across all three maturities at the primary market auction, following a 350-basis-point interest rate cut by the Central Bank of Nigeria (CBN). The 91-day Treasury bill saw the largest decline, with its stop rate dropping 80 basis points to 15.50% from 16.30%.

The 182-day bill's stop rate decreased by 70 basis points to 15.80% from 16.50%, while the 364-day bill fell 73 basis points to 15.89% from 16.62%. This auction occurred a day after the CBN reduced its Monetary Policy Rate from 26.50% to 23%.

Demand was particularly strong for the 364-day NTB, which attracted subscriptions of ₦4.09 trillion against an advertised offer of ₦400 billion, leading the Debt Management Office to allot ₦447.07 billion, exceeding the offer by ₦47.07 billion. The latest stop rates indicate a continued decline from the 2026 peak, with the 364-day NTB previously clearing at 17.70% on July 8.