The Central Bank of Nigeria, CBN, on Wednesday, January 3, 2018, offered treasury bills worth N149 billion to traders.
The exercise is to be conducted at the primary market by the apex bank. A breakdown of the auctioning showed that the central bank will sell 91-day-bill worth N11.77 billion at 12.25 percent to 12.50 stop rate.
Also, it would offer to investors the 182-day instrument worth 21.25 billion at 14 percent to 14.25 percent rate; and 364-day bill worth N115.85 billion at 14.45 percent to 14.70 percent stop rate.
Treasury bills are short-term debt instruments issued by the Federal Government through the Central Bank to provide short term funding for the government. They are sold at a discount and redeemed at par.
Twice a month, the CBN issues treasury bills to help the government fund its budget deficit, support commercial lenders in managing liquidity and curb inflation.
To buy treasury bills from the primary market, investors have to approach their banks requesting for a form.