Nigeria Cuts Treasury Bills Issuance by N1.27 Trillion

Godwin Emefiele, Governor of Central Bank

Nigeria Cuts Treasury Bills Issuance by N1.27 Trillion

Figures obtained from the Central Bank of Nigeria (CBN) shows that the Nigerian Government has reduced the total Nigerian Treasury bills issued and allotted by N1.27 billion in June this year to N1.65 trillion from N2.92 trillion in the same period of 2017 as part of efforts to manage its debt profile.

The CBN said, “The total NTBs issued and allotted was N1.65 trillion apiece, indicating a decrease of N1.27 trillion or 43.56 per cent below N2.92 trillion apiece in the corresponding period of 2017.

“The decrease was in line with Nigeria’s medium-term debt management strategy, attributable to reduced volume of NTB issues and the redemption of NTBs worth N638.90 billion in favour of foreign issues.”

It added that the total public subscription stood at N3.22 trillion, compared to N3.96 trillion in the corresponding period of 2017.

The structure of holdings indicated that Deposit Money Banks, including foreign investors, took up N920.07 billion or 55.65 per cent; mandate and internal funds customers (including CBN branches) N692.61 billion or 41.89 per cent, and merchant banks N40.69 billion or 2.46 per cent.

The successful bid rates in the market ranged from 10 per cent to 12.55 per cent for the 91-day, 10.30 per cent to 13.93 per cent for the 182-day and 10.70 per cent to 14.30 per cent for the 364-day tenors, the CBN added.

According to the apex bank’s half-year report, the lower rates experienced in the review period was due to smaller amount offered, fall in inflation rate, and competitive bids.

It added “The range of successful bid rates in the corresponding period of 2017 were between 13.40 and 14.00 per cent for the 91-day, 17.14 and 17.50 per cent for the 182-day and between 18.45 and 18.98 per cent for the 364-day tenors.”

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