CBN returns to S4 platform for N365 billion T-Bills Auction

The Central Bank of Nigeria (CBN) has reverted to the use of its Scruples Securities Settlement System (S4) for the electronic submission of Treasury Bills auction bids, following a brief suspension after its initial test-run in November.

Ekwutosblog understands the system was suspended following a glitch, which has now been resolved.

The latest move comes ahead of a N365 billion Treasury Bills auction scheduled for Thursday, December 17 – 18, 2025, reinforcing the apex bank’s resolve to tighten controls, enhance transparency and improve price discovery in the primary fixed income market.

The bids are to be submitted on Wednesday, December 17, 2025, while successful bidders will be required to settle their obligations on Thursday, December 18.

Market participants see the decision as a signal that the CBN is pressing ahead with reforms despite earlier operational inconsistencies. According to Mr. Tajudeen Olayinka, CEO of Wyoming Capital Partners, the move signals a renewed push for transparency in primary market auctions as the apex bank advances fixed income reforms.

Auction Details: N365 billion across three tenors 

According to auction guidelines issued last weekend, the CBN will offer a total of N365 billion across three short-dated tenors:

• 91-day bills: N100 billion
• 182-day bills: N100 billion
• 364-day bills: N165 billion

The auction will be conducted using the Dutch auction system, with bids to be submitted exclusively via the S4 web interface between 8:00 a.m. and 11:00 a.m. on Wednesday, December 17, 2025.

Each bid must be made in multiples of N1,000, subject to a minimum subscription of N50.001 million, while successful bidders are required to settle by 11:00 a.m. on Thursday, December 18.

Second attempt after November test-run 

This December auction marks the second activation of mandatory S4 usage, following the first implementation at the November 20, 2025 Treasury Bills auction, when the CBN raised over N700 billion.

Although the S4 system was briefly suspended in subsequent issuances—where bids were routed through Money Market Dealers (MMDs)—sources close to the apex bank said the pause reflected a work-in-progress transition, not a policy reversal.

Nairametrics gathered that the CBN expects to conclude the reform process before year-end, after which S4 will become fully operational for all government securities.

CBN seeks visibility, not market takeover 

Speaking at a Premium Times Academy workshop in Lagos recently, Mr. Zeal Akariwe, CEO of Graeme Blaque Advisory, said the CBN’s objective is real-time visibility, not a takeover of the control of the fixed income market.

“Did CBN take over? No. What the CBN wants is transparency and visibility over the market, not takeover. That visibility did not exist,” Akariwe said.

Akariwe, whose firm provides advisory services to CBN, stressed that the Securities and Exchange Commission (SEC) remains the statutory regulator, while the CBN’s actions are corrective measures to address structural weaknesses in the market.

Why transparency matters to CBN 

Akariwe highlighted how loopholes in the old system enabled profit concealment. He cited cases where banks and pension funds routed bond trades through brokers to hide gains from regulators.

In one illustration, Akariwe said a pension fund holding a 10% coupon bond bought at N100 could sell via an intermediary at N120, allowing the N20 profit to be shared discreetly among parties without regulatory visibility. “The CBN says we can’t have this where we cannot see it,” he noted.

Concerns had earlier emerged over inconsistent use of issuance platforms, with some auctions conducted via S4 and others through MMDs. Akariwe acknowledged this but described it as part of a transition phase.

Beyond auctions, the S4 rollout aligns with Governor Olayemi Cardoso’s broader reform agenda, spanning financial markets, banking supervision, compliance, and FX reforms, aimed at embedding transparency-driven systems that outlast the current administration.

With the return to S4 for the December auction, the CBN appears set to make electronic bidding the new normal in Nigeria’s government securities market.