CBN eyes sale of N1.64trn Treasury Bills in Q2’24

Business a.m

The Central Bank of Nigeria (CBN) plans to sell Treasury Bills (TBs) worth N1.64 trillion in the second quarter of 2024 (Q2’24), according to its Nigeria Treasury Bills Issue programme,  released recently.

Treasury Bills  are short-term (less than one year) debt instruments issued by the CBN on behalf of the federal government. The CBN uses TBs to borrow money from the public, as well as to control the money supply in the economy. When the CBN sells TBs, it receives cash from investors and promises to repay the face value of the TBs at a later date. The interest rate on TBs is determined by the CBN and is usually higher than the interest rate on savings accounts.

The programme for issuing Treasury Bills will run from March 7th to May 23rd, 2024. During this period, the CBN plans to issue Treasury Bills worth N414.29 billion on a 91-day tenor, N43.74 billion on a 182-day tenor, and N1.18 trillion on a 364-day tenor. This indicates that the CBN will be issuing TBs at different maturities to meet the needs of different investors.

According to the programme, in March, the CBN plans to sell a total of N660.62 billion worth of Treasury Bills. This includes N32.73 billion of 91-day bills, N12.97 billion of 182-day bills, and N614.92 billion of 364-day bills.

For the month of April, the CBN’s issuance plan calls for the sale of N292.17 billion worth of Treasury Bills. This will consist of N10.61 billion worth of 91-day bills, N15.97 billion worth of 182-day bills, and N265.59 billion worth of 364-day bills. 

For May, the CBN’s plan for the issuance of Treasury Bills is significantly higher than in March and April. It includes N362.9 billion worth of 91-day bills, N14.7 billion worth of 182-day bills, and N302.67 billion worth of 364-day bills, for a total of N688.3 billion.