The Central Bank of Nigeria (CBN) has announced its plan to sell Treasury Bills (TBs) worth N1.56 trillion in the third quarter of 2024 (Q3’24).
This figure represents a 4.9 percent decline from the N1.64 trillion sold in the second quarter of 2024 (Q2’24), reflecting a slight decrease in borrowing needs.
According to the CBN’s Nigeria Treasury Bills Issue Programme, the sale of these short-term debt instruments will commence on June 6th and conclude on August 22nd, 2024.
Treasury Bills are utilised by the CBN to manage money supply and to borrow funds from the public on behalf of the federal government.
The CBN’s issuance programme for Q3’24 is detailed as follows: 91-Day Bills: N170.86 billion, 182-Day Bills: N189.36 billion, 364-Day Bills: N1.2 trillion.
In June, the CBN plans to sell a total of N494.1 billion in TBs, distributed across various tenors: N49.98 billion in 91-day bills, N63.87 billion in 182-day bills, N380.25 billion in 364-day bills.
For July, the planned sales amount to N444.08 billion, with the following breakdown: N43.61 billion in 91-day bills, N7.93 billion in 182-day bills, N392.54 billion in 364-day bills.
In August, the CBN aims to sell N626.12 billion worth of TBs: N77.28 billion in 91-day bills, N117.6 billion in 182-day bills, N431.24 billion in 364-day bills.
TBs are short-term debt securities issued by the government to address budget deficits and fund public projects. In Nigeria, these bills are issued by the CBN on behalf of the federal government. The issuance of T-Bills is a crucial tool for managing the country’s money supply and ensuring economic stability.
The reduction in the volume of T-Bills for Q3’24 indicates a strategic adjustment by the CBN in response to economic conditions and fiscal requirements. By fine-tuning the volume of TBs, the CBN aims to strike a balance between meeting the government’s short-term financing needs and maintaining control over the money supply.
The CBN’s strategic approach in managing the issuance of T-Bills is expected to have significant implications for the Nigerian financial market, particularly in terms of liquidity management and interest rate stabilization. Investors and financial analysts will closely monitor the outcomes of these issuances to gauge the broader economic impact.
The CBN’s planned issuance of N1.56 trillion in Treasury Bills for Q3’24 underscores the ongoing efforts to manage Nigeria’s fiscal and economic landscape effectively. As the issuance programme unfolds, it will be crucial for stakeholders to stay informed and responsive to the developments in the Treasury Bills market.
