The Central Bank of Nigeria (CBN) has announced its plans to re-issue N2.2 trillion worth of Nigerian Treasury Bills (NTBs) in the fourth quarter this year as part of current efforts by the Federal Government to effectively manage the economy for improved governance in the country.
The apex bank, in its just released 2024 Issue Calendar, indicated that the NTB re-issuance initiative was part of the government’s ongoing efforts to manage liquidity, sustain the financial market and ensure the nation’s economic stability.
According to the calendar, which provides a detailed breakdown of auction and settlement dates and the volume of NTBs scheduled for re-issuance, the total re-issuance for the quarter in review includes N158.8 billion in 91-day bills, N109.6 billion in 182-day bills, and N1.9 trillion in 364-day bills, all totalling approximately N2.2 trillion.
Commencing with the auctions which are scheduled for September 4-5 2024, a total of N233.3 billion will be issued across the 91-day, 182-day, and 364-day maturity dates. Later in the month, specifically on September 25-26, 2024, the apex bank will conduct another re-issuance of N227.5 billion, with the 365-day bills accounting for the largest share of the issuance.
The auction scheduled for October 9-10, 2024 will feature the re-issuance of NTBs worth N81.9 billion. This auction will be followed on October 23-24, 2024 when a total of N374.7 billion NTBS will be issued across 91-day, 184-day and 364-day maturities.
Again, the apex bank has scheduled another re-issuance date for November 6-7, 2024, during which the apex bank will issue NTBs totalling N513.4 billion, representing the second largest single re-issuance of the quarter.
Based on the Calendar of Issuance, the final auction of the quarter is scheduled for November 21-22, this year which will close the re-issuance programme with the issuance of N610.8 billion NTBs by the apex bank.
Analysts believe that the NTB re-issuance programme will ensure financial system liquidity during the quarter and provide the Federal Government with necessary funds to fulfil its governance short-term obligations.
By rolling over maturing bills, the apex bank intends to mitigate the impact of maturing obligations on Federal Government’s finances while also providing investors with a relative secure and safe option in the investment markets.
