Connect with us

Business

FG scales down issuance of treasury bills by N1.27trn

Published

on

FG scales down issuance of treasury bills by N1.27trn

Apparently worried by out cries over its growing debt profile, the Federal Government has scaled down on the total Nigerian Treasury bills issued and allotted by N1.27bn in June this year to N1.65tn from N2.92tn in the same period of 2017.

This is contained in a document and figures released by the Central Bank of Nigeria (CBN).

According to the CBN “The total NTBs issued and allotted was N1.65tn apiece, indicating a decrease of N1.27tn or 43.56 per cent below N2.92tn apiece in the corresponding period of 2017.

“The decrease was in line with Nigeria’s medium-term debt management strategy, attributable to reduced volume of NTB issues and the redemption of NTBs worth N638.90bn in favour of foreign issues.”

The bank added that the total public subscription stood at N3.22tn, compared to N3.96tn in the corresponding period of 2017.

Read also: States received N1.23trn, generated N579bn in six months —NBS

According to the document, the structure of holdings indicated that Deposit Money Banks, including foreign investors, took up N920.07bn or 55.65 per cent; mandate and internal funds customers (including CBN branches) N692.61bn or 41.89 per cent, and merchant banks N40.69bn or 2.46 per cent.

The successful bid rates in the market ranged from 10 per cent to 12.55 per cent for the 91-day, 10.30 per cent to 13.93 per cent for the 182-day and 10.70 per cent to 14.30 per cent for the 364-day tenors, the CBN added.

The CBN further noted that the lower rates experienced in the review period was due to smaller amount offered, fall in inflation rate, and competitive bids.

“The range of successful bid rates in the corresponding period of 2017 were between 13.40 and 14.00 percent for the 91-day, 17.14 and 17.50 percent for the 182-day and between 18.45 and 18.98 percent for the 364-day tenors”, the bank said.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now