South Africa and Nigeria Rates: SARB, CBN, Bonds — 2026-09-03
Nigeria’s Central Bank (CBN) cut its one-year Treasury Bills stop rate to 16.84% on September 2, marking the lowest yield since June and signaling a continued easing cycle despite strong demand. Meanwhile, the naira strengthened to its highest level in two years against the dollar, with official rates breaking below ₦1,330/$ for the first time since May 2024.
South Africa and Nigeria Rates: SARB, CBN, Bonds — 2026-09-03
Top developments
CBN cuts T-Bill yields below 17% amid strong demand
On Wednesday, September 2, 2026, the Central Bank of Nigeria (CBN) allotted ₦865.71 billion at its primary market auction, cutting the stop rate on the one-year Treasury Bill to 16.84%. This represents a 31 basis point drop from the previous auction and is the lowest yield recorded since June 3, 2026, reflecting the second consecutive rate cut by the CBN. The move underscores the central bank's strategy to lower borrowing costs even as investor appetite remains robust, with bids significantly exceeding the offer amount.
Naira strengthens to two-year high against the dollar
The Nigerian naira appreciated to its strongest level in two years, trading at ₦1,329/$ in the official NAFEM window on September 1, 2026, breaking below the ₦1,330/$ threshold for the first time since May 2024. By September 3, the CBN official rate was quoted at ₦1,315.67 sell and ₦1,314.67 buy, indicating sustained momentum in the currency's recovery driven by rising external reserves and improved FX liquidity. This appreciation contrasts with the black market rate, which remained higher at approximately ₦1,405/$ on September 2, highlighting persistent parallel market premiums.
Investors trim Nigerian bond holdings as rates shrink
Fixed-income investors have begun trimming their holdings of Nigerian government bonds in response to shrinking yields, according to data released in late August. The average yield on Nigerian government bonds saw a slight increase as investors adjusted portfolios ahead of anticipated further rate cuts by the CBN. This shift suggests a strategic rotation by institutional players who are locking in gains from previous high-yield periods or reallocating assets in expectation of continued monetary easing.
Local view
Hausa-language media highlighted President Bola Tinubu's response to new economic data, noting that the Nigerian economy grew by 4.43% in the second quarter of 2026, up from 4.23% in the same period last year. DCL Hausa reported that Tinubu welcomed the National Bureau of Statistics (NBS) report, stating that Nigerians would begin to "feel" the benefits of the administration's economic policies. Additionally, Matattarar Labarai covered CBN outreach programs in Nasarawa State, where officials emphasized the importance of digital payments for financial inclusion and economic development.
Context & numbers
- Nigeria T-Bill Auction (Sept 2): Allotment: ₦865.71 billion; 1-Year Stop Rate: 16.84% (down from 17.15% on Aug 26).
- Nigeria FX Rates: Official NAFEM Rate: ₦1,329/$ (Sept 1); CBN Rate (Sept 3): ₦1,315.67/$; Black Market (Sept 2): ₦1,405/$.
- South Africa Policy Rate: The SARB MPC held the repurchase rate at 6.75% in its most recent March statement, with the May statement noting intensified inflation risks but no immediate change indicated in the provided snippets. Note: No specific South African bond yield data was available in the fresh search results post-Aug 27.
- South Africa CPI: Stats SA reported a monthly CPI increase of 0.2% in July, down from 0.7% in June, attributed to softer food inflation.
On the radar
- Upcoming Nigeria T-Bill Auction: The CBN is scheduled to offer ₦700 billion across 91-day, 182-day, and 364-day tenors on Wednesday, September 3, 2026. This is one of the final auctions for Q3 and will be closely watched for further yield compression.
- SARB MPC Meeting: While no specific date was confirmed in the recent snippets, investors await the next Monetary Policy Committee statement to gauge if the 6.75% rate will be held or adjusted given the cooling CPI print.
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