The Federal Government, through the Debt Management Office (DMO), raised ₦1.144 trillion at its first Nigerian Treasury Bills (NTBs) auction of 2026, as stop rates increased across all tenors amid sustained investor appetite for government securities.
Gatekeepers News reports that the auction, conducted on January 7, saw the DMO raise ₦108.17 billion from the 91-day bill, ₦48.23 billion from the 182-day tenor, and ₦987.78 billion from the 364-day paper.
Market analysts said the results underscored a continued upward repricing of risk-free assets, particularly at the longer end of the yield curve, as investors sought protection against inflationary pressures and policy uncertainty.
Despite the higher yields, demand remained strong, reflecting robust system liquidity and investors’ willingness to lock in elevated returns. The one-year NTB again dominated the auction, accounting for the bulk of funds raised.
The 364-day instrument emerged as the centrepiece of the auction, with the DMO raising ₦987.78 billion against an offer of ₦800 billion, while total subscriptions stood at about ₦1.38 trillion. The stop rate on the one-year paper climbed to 18.47 per cent, representing the sharpest increase across the curve.
Market participants attributed the strong demand to investors’ preference for longer-dated instruments that offer higher yields and hedge against reinvestment risk in a prolonged high-interest-rate environment.
The auction coincided with the release of the World Economic Situation and Prospects 2026 report by the United Nations (UN), which projected global economic growth of 2.7 per cent in 2026, slightly below the 2.8 per cent recorded in 2025 and well under the pre-pandemic average of 3.2 per cent.
According to the report, economic growth in the United States is expected to rise to 2.0 per cent in 2026 from 1.9 per cent last year, supported by monetary and fiscal easing. Growth in the European Union is forecast to slow to 1.3 per cent from 1.5 per cent in 2025, amid higher U.S. tariffs and persistent geopolitical tensions.
In the Commonwealth of Independent States and Georgia, output is projected to grow by 2.1 per cent in 2026, largely unchanged from 2025, despite the continued impact of the Ukraine crisis.
Growth in East Asia is expected to moderate to 4.4 per cent in 2026 from 4.9 per cent in 2025 as the boost from front-loaded exports fades. Japan’s economy is projected to expand by 0.9 per cent, down from 1.2 per cent last year.
In South Asia, growth is forecast at 5.6 per cent in 2026, easing from 5.9 per cent, driven by India’s projected 6.6 per cent expansion. Western Asia is expected to record GDP growth of 4.1 per cent, up from 3.4 per cent in 2025.
The report also projects that economic output in Africa will grow by 4.0 per cent in 2026, slightly higher than 3.9 per cent in 2025, even as high debt levels and climate-related shocks pose significant risks.
In Latin America and the Caribbean, output is expected to expand by 2.3 per cent in 2026, marginally below the 2.4 per cent growth recorded in 2025, amid moderate consumer demand and a gradual recovery in investment.
Global trade, the report noted, proved resilient in 2025, expanding by 3.8 per cent despite elevated policy uncertainty and rising tariffs, driven by front-loaded shipments and strong growth in services trade. However, trade growth is projected to slow to 2.2 per cent in 2026.
