CBN Plans to Sell N1.64 Trillion Treasury Bills in Q2 2024

The Central Bank of Nigeria (CBN) has announced its intention to sell N1.64 trillion worth of Treasury Bills in the second quarter of 2024.

This move comes as part of the bank’s Nigeria Treasury Bills Issue programme, which aims to raise funds to support the federal government’s financial needs.

According to the program, the sale of Treasury Bills will commence on March 7th and conclude on May 23rd, 2024.

The bills will be issued with varying tenors, including 91 days, 182 days, and 364 days.

The breakdown of the program reveals that in March, the apex bank plans to sell N660.62 billion worth of Treasury Bills, with N32.73 billion worth of 91 days bills, N12.97 billion worth of 182 days bills, and N614.92 billion worth of 364 days bills.

In April, the sale of Treasury Bills is expected to reach N292.17 billion, with N10.61 billion worth of 91 days bills, N15.97 billion worth of 182 days bills, and N265.59 billion worth of 364 days bills.

In May, the bank plans to sell N688.3 billion worth of Treasury Bills, with N362.9 billion worth of 91 days bills, N14.7 billion worth of 182 days bills, and N302.67 billion worth of 384 days bills.

Treasury Bills are short-term (less than one year) debt instruments used by the CBN to borrow money from the public on behalf of the federal government.

Nigeria’s 2024 budget of N28.7 trillion has a N9 trillion deficit, and the sale of Treasury Bills will be a critical source of funding to bridge this gap.

This financial news is significant for investors, as Treasury Bills serve as a low-risk investment option, offering a predictable income stream and potential capital preservation.

As the sale of these debt instruments approaches, investors will be closely watching the market to determine the best investment opportunities.