Nigeria has paid off about 130 billion naira ($413 million) worth of treasury bills maturing this week instead of rolling over the debt as it has done in the past, traders said.
Patience Oniha, director general of the Debt Management Office (DMO), confirmed the payment on Friday and said a treasury auction calendar for March would be released next week.
Nigeria issued a $2.5 billion Eurobond last month to help redeem portions of its treasury bill portfolio to lower costs.
It has been working to lower its costs, particularly as inflation fell for the 12th time in a row in January.
Treasury yields have been falling on expectations that the government will sell less debt at its second quarter auction after it sold the Eurobond. Traders expect rates to fall further after the pay off.
The DMO sold 129.99 billion naira worth of treasury bills at an auction on Wednesday, around half the amount it advertised in its calendar at the lower-range of the yield curve.
Investors demanded as high as 20 percent for the one-year bill which fetched 13.5 percent at the auction. The DMO sold the three-month bill at the lower-end of the curve at 11.85 percent.
Finance Minister Kemi Adeosun last month said the country would redeem 762.5 billion naira worth of treasury bills.
Nigeria has a treasury bill portfolio of 2.7 trillion naira ($8.6 billion). It paid off 198 billion naira worth of bills in December, leading to rates dropping by around 300 basis points.