The Business NG - December 03, 2025

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Editorial Focus: The Signals Behind CBN’s December T-Bill Auction

The CBN’s upcoming ₦700bn Treasury Bills auction is more than a routine liquidity exercise—it is a critical test of investor confidence, banking-sector behavior, and the direction of short-term interest rates. With system liquidity swelling above ₦3tn and the central bank now offering banks a more attractive 22.5% deposit rate, demand dynamics are shifting in ways that will shape pricing across the yield curve.

The MPC’s decision to hold the MPR at 27% signals policy steadiness, but the widened asymmetric corridor injects new incentives that could suppress bank participation at the PMA. This leaves the government balancing yield pressures with the risk of destabilising the market through aggressive pricing.

BusinessNG will track how this auction captures the tension between liquidity abundance and policy recalibration, offering readers clarity on what the stop rates reveal about Nigeria’s near-term financial pulse