CBN to auction N1.24trn treasury bills in two months

The Central Bank of Nigeria (CBN) debt calendar for the third quarter on Friday has shown that it will auction N1.24 trillion ($4.1 billion) worth of treasury bills at its open market operations beginning June 15 to August 31 2017.

A breakdown of the auctions include N226.64 billion in 91-day bills, N311.32 billion in 182-day bills and N698.64 billion in 364-day debt bills.

The central bank sells treasury bills twice a month to help fund the government’s budget deficit and support commercial banks in managing liquidity.

Nigeria, grappling with its first recession in 25 years after a slide in global oil prices and due to the impact of attacks on energy facilities in the Niger Delta, has set out a budget plan worth N7.44 trillion for this year.

The country is expected to face a budget deficit of about N2.21 trillion for the year as it tries to spend its way out of recession. It expects to raise money to cover more than half that deficit through domestic borrowing.

On Thursday, Africa’s biggest economy also announced plans to start an international road show next week for the sale of its Diaspora bond.