CBN’s Treasury Bill Operations Reach N11.43 Trillion in 2025 as Part of Economic Stabilization Efforts

The Central Bank of Nigeria (CBN) has significantly expanded its monetary operations, successfully mopping up N11.43 trillion through Nigerian Treasury Bills (NTBs) in the first ten months of 2025. This represents a 4.01 percent increase from the N10.99 trillion recorded during the same period in 2024, according to the CBN’s Primary Market data.

Strong investor appetite for risk-free instruments amid high inflation drove the successful NTB operations. The CBN increased its initial offering to N9.3 trillion, up 50.3 percent from N6.19 trillion in 2024, while total subscription reached N30.2 trillion, despite showing a 9.8 percent decline from the previous year’s N33.45 trillion.

Interest rates across different tenors showed notable changes throughout the period. The 91-day NTB rate decreased to 15.3 percent in October 2025 from 17 percent a year earlier. Similarly, the 182-day rate declined to 15.5 percent from 17.5 percent, while the 364-day rate fell to 16.14 percent from 20.65 percent in October 2024.

The central bank’s monetary tightening strategy has shown positive results, with inflation declining to 18.02 percent in September 2025, marking the lowest rate since July 2022. This improvement is attributed to increased foreign exchange stability and seasonal agricultural harvests.

Notably, investor demand for longer-maturity NTBs peaked in February 2025, with stop rates reaching 20.32 percent. Historical data shows significant rate movements, with the 91-day rate rising from 7 percent in December 2023 to 18 percent in December 2024, while the 182-day rate increased from 10 percent to 18.5 percent over the same period.

The Monetary Policy Committee recently adjusted its stance by reducing the interest rate to 27 percent from 27.50 percent, responding to the declining inflation trend. According to Cordros Research’s report “Nigeria in 2025: Reform to Recovery: Navigating the Rebound,” the domestic fixed income market experienced volatility due to tight monetary policy, instrument repricing, and government financing needs.

Looking ahead, analysts expect yields to moderate to approximately 18.5 percent for Treasury bills and 18 percent for bonds by the end of 2025, particularly in the second half of the year. This forecast assumes a pause in monetary policy rate hikes and a moderate pace of government borrowing, with the disinflationary process expected to begin in Q1-2025 influencing market sentiments.

The CBN’s strategic management of Treasury Bills continues to play a crucial role in Nigeria’s broader economic stabilization efforts, balancing the need to control inflation while maintaining market stability.