Toba Owojaiye reporting
Benin City, Edo State
The Central Bank of Nigeria (CBN) has announced plans to sell Treasury Bills worth N2.2 trillion in the fourth quarter of 2024 (Q4’24). This amount is 41% lower than the N3.76 trillion sold in the previous quarter (Q3’24).
Contextually, Treasury Bills (TBs) are short-term loans, usually for less than a year, that the government uses to borrow money from the public through the CBN. They also help the CBN manage how much money is in circulation.
Truth Live News gathered that the Treasury Bond sales will begin on September 4th and end on November 20th, 2024. The CBN plans to offer TBs in three categories based on the duration: 91 days, 182 days, and 364 days.
In September, the CBN will sell N622.72 billion worth of TBs, followed by N456.57 billion in October, and N1.12 trillion in November. The bulk of these sales will be in the 364-day category.
The government is raising funds by selling these short-term loans to the public, with most of the money to be borrowed for a year. The overall amount of TBs to be sold in this period is less compared to the last quarter, signaling a reduction in government borrowing.