CBN toIssue N2 Trillion T-Bills in July, Withdraw N1.35tn Liquidity
The Central Bank of Nigeria plans to issue N2 trillion in Treasury Bills across three July auction dates, while only N647.79 billion in bills are set to mature, creating a net liquidity withdrawal of about N1.35 trillion for the month—the largest single‑month net T‑bill withdrawal planned for 2026. The July programme opens the CBN’s Q3 2026 NTB issuance programme, which targets N5.8 trillion gross issuance against N2.64 trillion in maturing bills, implying net new borrowing of roughly N3.16 trillion for the quarter.
The first auction is set for Wednesday, July 8, 2026, offering N700 billion split as N100 billion in 91‑day bills at 16.28%, N100 billion in 182‑day bills at 16.50%, and N500 billion in 364‑day bills at 17.34%. Against the N269.36 billion of maturing bills, the session implies a net withdrawal of approximately N430.64 billion on settlement day. A second auction on July 15 will offer N600 billion with no significant maturities, while July 22 sees no new issue but N378.43 billion of bills maturing, injecting liquidity before the July 29 N700‑billion auction.
Investor demand has been strongest for the 364‑day paper, with a bid‑to‑cover of 2.08× at the June 17 auction, while shorter tenors remain relatively weak. The tight liquidity stance supports the CBN’s inflation‑control mandate but may tighten banking system liquidity and push lending rates higher.
With liquidity set to tighten, will you adjust your cash‑management or investment stance ahead of the July 8 auction?