Echotitbits – Nigeria News

Tag: liquidity

  • DMO raises about ₦1.1tn at first 2026 T-bills auction as stop rates rise

    DMO raises about ₦1.1tn at first 2026 T-bills auction as stop rates rise

    According to The Guardian Nigeria, the Debt Management Office secured about ₦1.144 trillion at its first Nigerian Treasury Bills auction of 2026, with stop rates climbing across all maturities.

    The report notes the 364-day paper dominated the auction and the stop rate for the one-year tenor rose sharply, reflecting investor demand for higher yields in a high-rate, high-inflation environment.

    For households and corporates, higher T-bill yields can improve returns on risk-free assets, but they can also raise government debt-service costs and crowd out private-sector borrowing.

    Market watchers will be tracking whether rates stabilise or rise further, and how monetary policy signals influence the next auction rounds.

    Echotitbits take: Elevated T-bill yields are a double-edged sword—great for savers, tough for fiscal space. Watch the CBN’s liquidity stance and whether banks reprice loans upward in response.

    Source: The Guardian Nigeria – https://guardian.ng/news/fg-raises-n1-1tr-from-first-2026-treasury-bills-auction/ 9 January 2026

    The Guardian Nigeria 2026-01-09

    Photo Credit: The Guardian Nigeria

  • SEC flags ₦753bn commercial-paper surge as firms tap short-term funding

    SEC flags ₦753bn commercial-paper surge as firms tap short-term funding

    2025-12-29 09:00:00
    Reporting by The Nation indicates Nigeria’s capital-market regulator says companies raised over ₦753bn through commercial paper issuance within months, pointing to renewed appetite for short-term, non-bank funding as businesses cover working-capital needs.

    Commercial paper has increasingly become a bridge instrument for corporates facing tight credit conditions, higher borrowing costs and volatile cashflows, especially in manufacturing and supply chains.

    SEC leadership has tied the momentum to broader market-structure reforms, arguing that faster settlement and deeper participation can improve liquidity and reduce risk for investors.

    In effect, the regulator is projecting the surge as evidence of confidence in market plumbing and regulation, even as macro pressures remain.

    The Whistler quoted the SEC DG saying, “Commercial paper issuance remained vibrant, with over N753bn raised…,” while The Guardian quoted him on settlement reforms: “By shortening the settlement period, we have enhanced liquidity….”

    Echotitbits take: The key watch item is pricing and rollover risk. If firms keep issuing at very high yields, the market may be masking stress rather than solving it. Watch for defaults, delayed redemptions, and whether issuers shift to longer-dated bonds.

    Source: BusinessDay — https://businessday.ng/markets/article/nigeria-records-over-n753bn-commercial-paper-issuances-in-6-months/?amp – December 29, 2025
    BusinessDay 2025-12-29

    Photo Credit: BusinessDay