CBN Enforces New Treasury Bills Regime, Takes Full Control of Government Securities Market

CBN has enforced new treasury bills regime and took the full control of government securities market.

 

NewsOnline Nigeria reports that the Central Bank of Nigeria (CBN) has formally activated its long-dormant S4 electronic platform, marking a major shift in how Treasury Bills (T-Bills) auctions will now be conducted across the country.

The move, which takes full effect with the N700 billion T-Bills issuance scheduled for Thursday, November 20, 2025 signals the apex bank’s determination to tighten control over the primary government securities market and end the long-standing dominance of Primary Dealer Market Makers (PDMMs).

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CBN Ends PDMM-Led Auction System

 

Although the S4 system has existed since 2014, it has never been used as the official submission channel. Until now, investors relied on physical submissions through the CBN Issue Office or routed bids through PDMMs, a process experts say created room for price manipulation and unequal access.

Under the new directive, all bids must be submitted exclusively through the S4 platform, effectively removing PDMMs’ visibility advantage.

Investment analyst and CEO of Wyoming Capital Partners, Tajudeen Olayinka, told Nairametrics:
“This move is consistent with the CBN’s earlier signal that it would fully take charge of the government securities primary market.”

The automation means no dealer can view competing bids before submission — a significant step in eliminating collusion and ensuring transparency.

A market dealer who requested anonymity said:
“With S4, everyone meets at the same point. Nobody sees another investor’s rate. It levels the playing field completely.”

FG to Raise N700 Billion in Major Auction

In the first issuance under the new regime, the Federal Government will auction N700 billion in T-Bills, comprising:

• N100 billion – 91-day

• N150 billion – 182-day

• N450 billion – 364-day

The auction follows the Dutch format, with submissions allowed only between 8:00 a.m. and 11:00 a.m. on Wednesday, November 19, 2025. Bidders must place a minimum of N50,001,000, quoted in multiples of N1,000.

Faster Settlement, Tighter Controls

Successful bidders will be notified on November 20 and must make payment by 11:00 a.m. the same day. Settlement will occur directly through CBN accounts — a shift aimed at improving efficiency and tightening liquidity control.

The apex bank also noted that the final amount offered may be adjusted based on market conditions.

A New Era of Transparency

By enforcing a digital, dealer-neutral system, the CBN has effectively dismantled the structural bottlenecks and informal advantages that shaped price discovery in Nigeria’s fixed-income market for years.

Industry analysts describe the shift as a “watershed moment”, signalling a new era of transparency, fairness, and centralised oversight in government securities issuance.

What to Know About CBN’s S4 System

The S4 (Secure Software for Settlement System) is a CBN-developed digital platform that allows automated, secure submission of bids for government securities. Though created over a decade ago, it is only now becoming the official gateway for T-Bills auctions.

Its activation marks a major structural overhaul in the Nigerian fixed-income market.