Investors are increasingly positioning for longer-term returns in Nigeria’s fixed-income market, with the latest treasury bills auction showing an overwhelming preference for the one-year government security.

At the Central Bank of Nigeria’s (CBN) primary market auction on Wednesday, investors submitted N3.63tn for the 364-day T-bill, representing 95.9 per cent of the N3.79tn total bids received across the three maturities.

The demand came despite the CBN lowering the stop rate on the one-year instrument by 44 basis points to 17.15 per cent, from 17.59 per cent at the previous auction.

The auction results point to a significant shift in investor appetite towards longer-dated government securities, even as demand for shorter-tenor instruments remained subdued.

The CBN had offered N700bn across the three maturities, comprising N100bn each for the 91-day and 182-day bills and N500bn for the 364-day bill.

However, total subscriptions reached approximately N3.79tn, more than five times the amount offered.

The PUNCH that the 364-day instrument was the clear outlier at the auction, receiving bids equivalent to 7.26 times the amount offered.

The CBN ultimately allotted N638.19bn, exceeding the N500bn offer by N138.19bn. Despite the additional allotment, only about 17.6 per cent of total bids submitted for the instrument were accepted.

Investors quoted yields between 16.00 per cent and 19.05 per cent, but the CBN settled at 17.15 per cent, suggesting that the level of demand allowed the regulator to reject more expensive bids.

The development is significant because the CBN achieved a lower borrowing rate even after receiving exceptionally strong demand for the security.

The contrast was stark at the shorter end of the curve. The 91-day bill attracted N103.32bn in subscriptions against N100bn offered. The CBN allotted N89.10bn at an unchanged stop rate of 16.30 per cent.

The 182-day bill performed even more weakly, attracting only N52.93bn against N100bn on offer. The CBN allotted N35.59bn, while the stop rate remained at 16.50 per cent.

Secondary-market yields for the three instruments stood above their respective auction stop rates, at 17.45 per cent for the 91-day bill, 17.05 per cent for the 182-day bill and 17.24 per cent for the 364-day bill.

According to a financial sector analyst, Jimbe Asalor, the concentration of bids in the one-year instrument suggests investors may be placing greater value on locking in relatively attractive yields over a longer period rather than repeatedly rolling over shorter-term securities.

He noted that the latest auction also demonstrates “the CBN’s ability to borrow more cheaply when demand is concentrated around a particular maturity.”

He added that by accepting N638.19bn on the 364-day bill at 17.15 per cent, the CBN borrowed above its initial offer while simultaneously cutting the rate by 44 basis points.

“The nine-basis-point difference between the auction stop rate and the 17.24 per cent secondary-market yield also indicates that the one-year segment is now trading relatively close to market expectations.”

A Lagos-based consultant economist, Chukwunonso Iheoma, said if the preference for longer-dated treasury bills persists, the development could provide further support for a gradual decline in government borrowing costs while strengthening expectations of eventual interest-rate cuts.

The Manufacturers Association of Nigeria has urged the Lagos State Government to become the first state to publish a harmonised tax code aligned with the new tax laws, saying the move will significantly reduce compliance costs for manufacturers.

Speaking on Thursday at the 55th Annual General Meeting of the association’s Apapa Branch in Lagos, MAN President, Francis Meshioye, pushed for stronger safeguards against multiple taxation and levies under the new tax regime.

Meshioye called on Lagos to provide manufacturers with a single system for tax assessment and payment to eliminate duplication and uncertainty across government agencies and levels of administration.

“The 2025 Tax Law gives us a once-in-a-generation opportunity to reset this. The law seeks to harmonise, digitise, and reduce friction. But for it to work for manufacturers, especially those in trade corridors like Apapa, we need deliberate safeguards,” he said.

He urged Lagos to publish a harmonised tax code that would provide one assessment authority and one payment portal for manufacturers.

“We urge Lagos State to be the first to publish a harmonised tax code aligned with the new law. One entity to assess, one portal to pay. This will cut compliance cost significantly for our members,” Meshioye said.

The MAN president said the reform would help address the multiple taxes and levies that manufacturers currently face across federal, state and local government levels: “In Apapa, taxation comes from everywhere. A truck moving raw materials from the port to Amuwo Odofin can be stopped by multiple agencies before it gets to the factory gate. That is in addition to corporate tax, VAT, and state levies.”

Meshioye also called for a “No-Tout Zone” policy in Apapa, Amuwo and Kirikiri, saying the government must protect legitimate revenue collection from illegal levies imposed by non-state actors along industrial and port corridors.

He said the Lagos State Government should also work with the Nigerian Ports Authority and the Nigerian Shippers’ Council to create a single bill for port-related charges so that manufacturers would not pay multiple fees to move one container.

The MAN president noted that the association was not seeking tax exemptions but wanted manufacturers’ paid taxes to translate into better infrastructure and security.

“We are asking that the tax we pay translates to motorable roads, working drainage, and security in our clusters. That is the social contract,” Meshioye said.

He further urged the Joint Revenue Board to ensure that states did not use the new tax regime to introduce additional taxes but instead consolidated and simplified existing obligations.

In a separate interview, Meshioye said effective implementation of the new tax laws would expand the tax base while easing the burden on compliant businesses.

“We want an effective implementation of that new law that we have set up, that took effect from January this year. You see, we have had multiple taxes in the past. We had them on multiple levels,” he said.

He said sub-national governments needed to domesticate and fully implement the new framework for manufacturers to enjoy the intended relief.

“And once it’s signed, the sub-national should see it is fully and effectively implemented. If this is done, the body will be laser-focused. Many other people are not paying taxes to come to the tax net, and the relief that is expected to give to the manufacturing business will be achieved,” Meshioye said.

He said the impact of the reform should become measurable through increased business expansion, investment and employment: “So, if it is implemented and you are finding that businesses are expanding, more investment is coming up, and employment level is reduced, then we will have done something.”

The Chairman of MAN, Apapa Branch, Raphael Danilola, said multiple taxation, regulatory burdens, high interest rates, energy costs, insecurity and logistics challenges continued to constrain manufacturers.

“Ultimately, our concern is simple: how do we ensure that tax reform strengthens manufacturing competitiveness rather than adds another layer of pressure on businesses already operating in a challenging environment?” Danilola queried.

He urged the Lagos State Government to review the mandates of its agencies to eliminate duplication and harmonise national and state environmental laws to reduce compliance costs for manufacturers.

Danilola also called for the implementation of the new tax policies and assessment of their impact on state and local governments.

The Federal Airports Authority of Nigeria has lifted its restriction on Bolt operations at airports, restoring passengers’ access to the e-hailing service following widespread complaints over inconvenience and rising transport fares.

The reversal followed a directive from the Minister of Aviation and Aerospace Development, Festus Keyamo, who intervened after passengers and social media users raised concerns about the disruption.

In a post on his X handle, Keyamo said, “Following my directive to FAAN to urgently address the issue of exorbitant taxi fare increases at our airports, the issue has been resolved as follows.”

FAAN announced the decision in a statement signed by its Director of Public Affairs and Consumer Protection, Henry Agbebire, and made available to our correspondent on Thursday.

According to the statement, the resolution followed constructive engagements between FAAN and Bolt, resulting in an agreeable operational framework for the e-hailing company to operate at FAAN-managed airports.

“The Authority is therefore pleased to announce that, following constructive engagements, FAAN and Bolt have reached an agreeable operational framework and Bolt is cleared to commence its services at FAAN-managed airports immediately.”

The development came after concerns over the management of commercial and e-hailing vehicles at airports, with FAAN noting that it had been working for nearly a decade to address challenges associated with the operations of such vehicles.

The Authority said the challenges included passenger solicitation and touting, unregulated operations, random pick-ups, as well as safety, security and accountability concerns.

“These challenges, which in some instances involve drivers operating across more than one platform, have made it necessary for the Authority to strengthen the management and visibility of commercial transportation within the airport,” FAAN stated.

To address the challenges, the airport authority introduced the Airport Car Hire Rank Management System, known as ACHRAMS, to regulate and manage authorised airport car-hire services.

FAAN explained that ACHRAMS was not an e-hailing platform and was not designed to compete with mobility companies such as Uber and Bolt.

“ACHRAMS is not an e-hailing application and was never conceived as a competitor to Uber, Bolt or any other mobility platform. Its function is limited to the management of airport car-hire ranks and the authorised operations associated with them.”

The authority stressed that it supported competition in the airport transportation sector and had no intention of creating a monopoly. “FAAN supports healthy competition and does not seek to create or promote a monopoly in airport transportation.”

FAAN also clarified concerns over airport taxi fares, saying the rates that featured prominently in recent public discussions were neither newly imposed by the authority nor introduced by ACHRAMS.

It said airport taxi fares had existed independently of the system and were not substantially different from the rates previously applicable. “What ACHRAMS introduced was greater visibility and transparency around the prevailing airport-taxi rates, making the cost more readily apparent to passengers,” the authority said.

It, however, acknowledged that passengers had become accustomed to lower fares offered by e-hailing platforms, adding that the comparison had heightened concerns over transportation costs.

FAAN said it was “aware of and deeply appreciates” the concerns expressed by passengers over the increased cost and inconvenience experienced during the temporary suspension of e-hailing services. “We sincerely apologise for the difficulties this caused our passengers.”

The authority maintained that its actions were driven by regulatory, safety and security considerations rather than economic interests. “While the Authority’s actions were driven by regulatory, safety and security considerations rather than economic interests, FAAN acknowledges that the immediate impact on passengers was significant.”

It added, “We have listened, reflected and made the necessary adjustments.”

According to the authority, the agreement with Bolt showed that airport security and regulation could be maintained without denying passengers access to convenient transportation options.

“The resolution demonstrates that it is possible to protect the integrity and security of the airport environment while preserving the convenience and freedom of choice that e-hailing services provide to passengers.”