The new offer is a refinancing of existing maturing treasury bills of different tenures.
The Nigerian government issues Treasury bills, which are short-term financial obligations, through the Central Bank of Nigeria (CBN) as a means to gather funds for covering the government’s budget shortfalls.
According to the bill issuance program, the apex bank will be refinancing its 91-day, 182-day, and 364-day treasury bills that mature during the period.
For the 91 days treasury bills, the central bank hopes to raise N414.28 billion while for the 182 days T-bills it plans to sell N43.74 billion and for the 364 days T-bills, it plans to sell a whopping N1.183 trillion worth of treasury bills.
In March, the CBN plans to sell N822.63 billion worth of treasury bills while for April, it plans to raise N292.20 billion worth of T-bills and for May it wants to sell N388.33 billion worth of treasury bills.
Last week, the CBN sold N1.58 trillion worth of T-bills to the investing public at a 19 per cent interest rate to mop up excess liquidity in the financial system. All tenors of its last auction were oversubscribed- a clear sign of the voracious appetite of investors in the security.
These bills are presented as an investment opportunity within Nigeria, offering a low-risk option for investors.
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