The Federal Government of Nigeria (FGN), through the Central Bank of Nigeria (CBN), has released the results of its Treasury Bills (T-Bills) auction conducted on March 5, 2025.

The auction, which offered N650 billion, witnessed robust investor demand, attracting N1.92 trillion in total subscriptions, with the bulk of bids directed at the 364-day instrument.

Despite the heightened demand, the stop rate on the one-year bill fell to 17.82 per cent, the lowest level since September 2024, as the Debt Management Office (DMO) continues to push back against rising borrowing costs.

This development underscores the ongoing debate between the CBN, which seeks higher rates to attract foreign investors, and the DMO, which argues that excessive yields increase debt servicing costs.

The latest auction saw strong participation across the three maturities, but the 364-day bill dominated demand, accounting for 94 per cent of total subscriptions.

The most sought-after instrument, with N500 billion on offer, drew N1.80 trillion in bids.

The government allotted N717.97 billion, with the stop rate closing at 17.82 per cent, down from 18.50 per cent in February.

In total, the government allotted N830.44 billion, overshooting its initial N650 billion offer, as demand surged.

According to an analyst who chose to remain anonymous, the declining stop rate on the 364-day bill highlights the ongoing friction between the CBN and DMO over the appropriate pricing of government debt.