FG to raise N213.75billion Treasury bills on March 15

The Federal Government
plans to raise N213.75bn
($681m) from short-dated
Treasury bills at an auction
on March 15, the Central
Bank of Nigeria said on
It plans to raise N39bn in three-
month debt, N48.45bn in six-month
bills and N126.30bn in one-year
notes, using a Dutch auction
system. Payment will be due the
day after the auction, according to
The CBN issues Treasury bills twice a month
to finance the government’s budget deficit,
help manage commercial lenders’ liquidity
and curb rising inflation.
The country’s inflation had climbed to 18.72
per cent in January, its 12th straight monthly
rise. The trend was worsened by dollar
shortages, which had crippled the country’s
import-dependent economy and triggered the
first recession in 25 years.
The Federal Government is also facing
funding challenges due to the drop in the
price of oil, which the nation depends largely
on for revenue. It expects the budget deficit
to widen to N2.36tn this year as it tries to
spend its way out of the recession.
More than half of the deficit will be funded
through local borrowing, the government has
The government said on Tuesday that it
planned to sell N1.13tn ($3.70bn) worth of
Treasury bills in the second quarter of the
year, according to the CBN’s debt calendar.
The central bank aims to auction N243bn in
91-day bills, N198bn in 182-day and N689bn
in 364-day debt.
The Federal Government is planning to raise
$300m via Diaspora Bond this month,
according to the Minister of Finance, Mrs.
Kemi Adeosun.


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