CBN To Help Federal Government Raise N1.13tn Through Treasury Bills in Q2
- The CBN plans to raise N1.13tn for the Federal Government through treasury bills in Q1 2023
- N820bn will be raised through the rollover of maturing treasury bills, while N310bn will be raised through new issuances
- The funds will be used to finance the Federal Government's budget deficit and support critical infrastructure projects
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The Central Bank of Nigeria (CBN) has announced plans to raise N1.13 trillion for the Federal Government (FG) through treasury bills.
The apex bank revealed this in its latest Nigerian Treasury Bill Issue Programme for the Second Quarter 2023 available on the bank’s website.
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What are Treasury Bills
Treasury Bills are short-term debt instruments issued by the government to raise funds. They have a maturity period of less than one year (usually 91 days, 182 days or 364 days) and are sold at a discount to their face value.
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The difference between the discounted price and the face value is the interest earned by the buyer.
How CBN plans issue the Treasury Bills
According to the CBN, the treasury bills will be issued in three tenors of 91-days, 182-days, and 364-days, with plans to raise N23.67bn, N34.7bn, and N1.08tn, respectively.
The programme document shows that the issuance is scheduled for March to May 2023.
In March, the CBN plans to raise N531.74bn worth of T-bills, comprising N4.28bn worth of 91-day bills, N14.8bn worth of 182-day bills, and N512.66bn worth of 364-day bills, Punch reports.
In April, the central bank plans to raise N280.98bn worth of T-bills, consisting of N4.8bn worth of 91-day bills, N12.62bn worth of 182-day bills, and N263.56bn worth of 364-day bills.
Finally, in May, the apex bank plans to raise N324.36bn worth of T-bills, consisting of N14.48bn worth of 91-day bills, N7.2bn worth of 182-day bills, and N302.68bn worth of 364-day bills.
Nigeria’s foreign reserves drop by $317m
In another report, the Central Bank of Nigeria has revealed that foreign reserves have been reduced by $317 million.
The country's foreign reserves stood at $36.99bn as of January 31, 2023, but fell to $36.67bn as of February 27, 2023
The reduction in reserves was attributed to increasing demand for dollars by students and importers.
Source: Legit.ng
