CBN Plans N1.64 Trillion Treasury Bill Sale in Second Quarter of 2024


The Central Bank of Nigeria (CBN) has announced plans to sell N1.64 trillion in Nigeria Treasury Bills during the second quarter of 2024, covering the months of March to May.

This new offer aims to refinance existing maturing treasury bills of varying tenures.

According to the bill issue program, the CBN will be refinancing its 91-day, 182-day, and 364-day treasury bills that are set to mature during the specified period.

The breakdown of the planned sales includes N414.28 billion for the 91-day treasury bills, N43.74 billion for the 182-day treasury bills, and a substantial N1.183 trillion for the 364-day treasury bills.

In March, the CBN intends to sell N822.63 billion worth of treasury bills, followed by N292.20 billion in April and N388.33 billion in May.

During the previous week, the CBN successfully sold N1.58 trillion worth of T-bills to investors at a 19% interest rate, effectively mopping up excess liquidity in the financial system.

The oversubscription of all tenors at the last auction underscores the strong demand from investors for this security.

Treasury bills issued by the Nigerian government through the CBN serve as short-term financial instruments used to raise funds for covering budget shortfalls.

These bills are considered low-risk investment opportunities within Nigeria, attracting investors seeking secure options.

In addition to addressing excess liquidity, the central bank may adjust interest rates on Treasury bills, particularly those with longer tenures, as part of its strategy to combat inflation.

Nigeria’s current inflation rate stands at a 27-year high of 29.90%, prompting the CBN to raise the Monetary Policy Rate (MPR) to 22.75% in efforts to stabilize prices and curb inflationary pressures.

The CBN’s proactive measures, including the planned treasury bill sales and adjustments to interest rates, reflect its commitment to managing liquidity and addressing economic challenges to promote stability and sustainable growth in Nigeria’s financial landscape.

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