In a bid to curb inflation and stabilise the economy, the Central Bank of Nigeria (CBN) has unveiled plans to sell N1.64 trillion worth of treasury bills in the second quarter of 2024. The announcement came as part of the treasury bills issue programme revealed by the CBN on Friday.
Treasury bills are short-term debt instruments with maturities of less than one year, which are utilized by the CBN to borrow funds from the public on behalf of the Federal Government. This move, not only aids in government financing but also serves as a mechanism for controlling the money supply in the economy, thereby controlling inflation.
The TB (Treasury Bills) issue programme, is set to commence on March 7 and conclude on May 23, 2024
During this period, the central bank will issue Treasury Bills (TBs) totaling N414.29 billion for a 91-day tenor, N43.74 billion for 182 days, and N1.18 trillion for 364 days.
The breakdown of the programme shows that in March, the central bank plans to sell TBs worth N660.62 billion, consisting of N32.73 billion for 91-day bills, N12.97 billion for 182-day bills, and N614.92 billion for 364-day bills.
In April, it plans to sell TBs worth N292.17 billion, with N10.61 billion for 91-day bills, N15.97 billion for 182-day bills, and N265.59 billion for 364-day bills.
In May, the CBN plans to sell TBs worth N688.3 billion, including N362.9 billion for 91-day bills, N14.7 billion for 182-day bills, and N302.67 billion for 364-day bills.
With Nigeria’s headline inflation rate reaching 29.9 percent and food inflation at 35.41 percent as of January 2024, the CBN has intensified efforts to reduce these figures and stabilize the economy. During the latest Monetary Policy Committee meeting, the bank opted to raise the benchmark interest rate from 18.75 percent to 22.75 percent, marking another measure aimed at tackling inflation.
The proactive steps taken by the CBN shows its commitment to addressing economic challenges and maintaining sustainable growth in Nigeria.
