My take be say the DMO's massive N800 billion Treasury Bill offering na bold move wey fit backfire if dem continue the same tight‑allotment style. Dem dey plan to auction N800 bn on November 11 while N148.565 bn of bills mature the next day, meaning the net funding gap sit around N651.44 bn. That kind of cash injection fit help the government meet short‑term needs, but the real question be how much of that money go actually land in investors' hands.
Last time, on the November 4 auction, the DMO only allotted about N509 bn out of N2.045 trn bids – roughly 25% of demand – leaving plenty of cash on the table. If they repeat that selective approach, the market could see a supply‑demand mismatch, pushing up yields and hurting the borrowing cost the government tries to keep low. On the flip side, banks currently sit on a hefty liquidity cushion, with system liquidity up over 15% week‑on‑week, so there is appetite for safe government paper. The DMO must balance the urge to raise funds with the risk of spiking rates; a full‑on allotment could flood the market and force them to accept higher stop rates.
So, whether the DMO go increase the allotments or keep the choke‑hold will set the tone for the next few months. I wan hear una thoughts – na better strategy dem dey follow or dem go choke the market?