Debt Management Office (DMO) has increased its Nigerian Treasury Bills (NTBs) issuance programme for the second quarter of 2026 by approximately N850 billion, raising the total planned offer amount from N3.95 trillion to N4.8 trillion, according to an analysis of the original and updated Q2 2026 NTB issuance calendars earlier published by the agency.

The revised programme leaves total maturing Treasury Bills unchanged at N3.197 trillion but significantly expands planned issuance, only in June having concluded April and May auctions.

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The planned issuancesu for June more than doubled the quarter’s implied net new borrowing, underscoring the Federal Government’s increased reliance on short-term domestic debt financing.

The updated issuance calendar shows a substantial increase in planned Treasury Bills offerings, with the additional borrowing concentrated entirely in the final month of the quarter.

While issuance of 182-day bills increased to N500 billion from N400 billion, the 91-day bill allocation was reduced to N600 billion from N700 billion.

The DMO could not tinker with April and May auction sizes, which had already been concluded, leaving them concentrating the entire upward revision in the June 3 and June 17 auctions, both of which now carry N1 trillion offer sizes.

The structure of the revised programme suggests a deliberate decision by the government to back-load additional borrowing into the final month of the quarter. This approach could have important implications for market liquidity and yield dynamics during June.

The growing dominance of the 364-day instrument also reflects a preference for longer-duration short-term borrowing, allowing the government to reduce rollover pressure while remaining within the Treasury Bills market.

The revised NTB programmes follows the Central Bank of Nigeria’s intensified liquidity management through aggressive Open Market Operations (OMO), which creates a net liquidity withdrawal of approximately N815.21 billion on the settlement date, making it one of the largest single-day NTB liquidity absorptions in recent periods.

The updated calendar, which now shows N4.8 trillion in planned issuance compared with the original N3.95 trillion programme, indicates that the government’s short-term financing needs increased during the quarter.

Credit: Nairametrics