The Central Bank of Nigeria, CBN, on Wednesday, September 8, in its latest issuance calendar said the federal government will raise about 952.04 billion naira ($3.02 billion) with new issues of Treasury bills from Sept. 15 to Dec. 1.
T-bills are marketable short-term money market securities that serve the purpose of raising money for the government and also help in monetary policy management of the CBN.
The CBN issues treasury bills to raise cash to fund the government budget deficit, help manage banking system liquidity and curb rising inflation.
The apex bank said it would sell 264.47 billion naira worth of three-month bills, 204.88 billion of six-month bills and 482.69 billion of one-year bills, Reuters reports.
Nigeria is expected to borrow around 900 billion naira from the local market to bridge its budget deficit, which is estimated at 2.2 trillion naira in this year’s budget.
The Central Bank of Nigeria, CBN, had earlier in August unveiled plans to offer N212.85 billion ($675 million) in Treasury bills maturing between 91-days and one-year on August 31.
It said it would sell N45.85 billion worth of the 91-day bills, N62 billion of the 182-day paper and N105 billion of the 1-year debt.
Payment for the purchase will be effected on Thursday,September 1, the apex bank said in a public notice. The T-bills’ maturities range between three months and a year and would be raised today, according to the CBN.
