CBN to raise N1.13tn for Nigerian govt through Treasury Bills in Q2

The Central Bank of Nigeria has announced its plans to raise N1.13 trillion through treasury bills in the second quarter of 2023.

This represents a significant increase from the N926bn raised during the same period in 2022.

This was stated in the Nigerian Treasury Bill Issue Programme for the Second Quarter 2023, available on the apex bank’s website.

CBN document shows that the bills are classified into three tenors of 91-days, 182-days, and 364-days, with a plan to raise N23.67bn, N34.7bn, and N1.08tn respectively, with the issuance scheduled for March to May 2023.

A closer look at the programme document indicates that the CBN plans to raise N531.74bn worth of T-bills, consisting of N4.28bn worth of 91-day bills, N14.8bn worth of 182-day bills, and N512.66bn worth of 364-day bills in March.

In April, the central bank plans to raise N280.98bn worth of T-bills, comprising N4.8bn worth of 91-day bills, N12.62bn worth of 182-day bills, and N263.56bn worth of 364-day bills.

Finally, in May, the apex bank plans to raise N324.36bn worth of T-bills, consisting of N14.48bn worth of 91-day bills, N7.2bn worth of 182-day bills, and N302.68bn worth of 364-day bills.

Read also:Three banks MDs to retire in 2 years in obedience to new CBN rule

It is noteworthy that the bills are also a roll-over of maturing bills for the corresponding period.

The CBN also raised a total of N540.9bn through treasury bills for January and February combined, a significant increase from the N342.6bn raised during the same period in 2022.

Nigeria’s treasury bills rates have increased over the past few weeks, with the 91-day treasury bills going for three per cent, 182-day bills at 3.24 per cent, and 9.9 per cent for the one-year bill.

T-bills are short-term debt instruments issued by the Nigerian government through the CBN to raise funds to finance government budget deficits.

Data from the central bank reveals that the government issued a total of N3.9tn in treasury bills in 2022.

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