The Central Bank of Nigeria (CBN) sold N1.06 trillion ($630 million) in Treasury bills at its weekly auction on Tuesday, with the one-year benchmark rate climbing to 17.70%.
The higher yield reflects continued tightness in the domestic money market as the central bank maintains its aggressive stance on liquidity absorption.
The auction result signals that demand for short-term government debt remains robust despite the elevated cost of borrowing.
By pushing the one-year rate higher, the CBN is effectively raising the floor for short-term funding costs across the Nigerian financial system.
This move aligns with the bank's broader strategy to curb excess liquidity and stabilize the naira through tighter monetary conditions.
This weekly auction is part of a larger, more significant operation planned for the third quarter of 2026.