CBN To Auction N1trn Treasury Bills By Q4 2019

The Central Bank of Nigeria (CBN) plans to raise the Nigerian Treasury Bills (NTB) worth N1 trillion in cash for various tenors in the fourth quarter of 2019.

The Treasury Bills programme released by the regulator on its website indicated that N91.6 billion will be raised in the 91-day maturity period, N90.2 billion.

While the Apex bank also plans to raise a total of N90.18 million for 182 days tenor from medium-term investment, the sum of N821.8 billion will be auctioned by the CBN for 364 days maturity period.   

What Is Treasury Bill 

When the government is going to the financial market to raise money, it can do so by issuing two types of debt instruments, the treasury bills and government bonds.

Treasury bills are however issued when the government needs money for a shorter period and also used to control the circulation of funds in the economy while bonds are issued when it needs debt for more than say five years.