Treasury Bills Issuance Falls by N1.153 Trillion in One Year
The Nigerian Treasury Bills issued and allotted fell by N1.153 trillion in the 2018 financial period. The total value of NTBs issued and allotted was N3.34 trillion apiece, indicating a decline of N1.153 trillion or 25.65 per cent below what was alloted in 2017.
The decrease was attributable largely to lower NTBs issued coupled with the redemption of treasury bills worth N78.05 billion in December 2018 as the government indicated its preference for cheaper and longer tenored foreign debt.
According to the Central Bank of Nigeria’s 2018 activity report, the total public subscription stood at N6.713 trillion, compared to N7.178 trillion in 2017. The lower level of public subscription was traceable to the high patronage at OMO auctions.
The structure of allotment of the instrument indicated that banks (including foreign investors) took up N1.763 trillion or 52.76 per cent, mandate and internal funds N1.508 trillion or 45.12 per cent and merchant banks N70.73 billion or 2.12 per cent.
There was no CBN take-up in the period under review. The stop rates in 2018, ranged from 10.00 to 12.55 per cent for the 91-day, 10.30 to 13.93 per cent for the 182-day and 10.70 to 14.45 per cent for the 364-day tenors.
The range of stop rates in 2017 was between 12.95 and 14.00 per cent for the 91-day, 15.00 and 17.50 per cent for the 182-day and 15.57 and 18.98 per cent for the 364-day tenors.
At the end of December 2018, the structure of the NTB holdings outstanding indicated that commercial banks accounted for 47.11 per cent, compared with 57.74 per cent in 2017.
Mandate and internal account customers (parastatals) accounted for 38.16 per cent, merchant banks 1.31 per cent, while the CBN accounted for 13.42 per cent, compared with 38.42, 2.09 and 1.75 per cent respectively, in 2017.