In the third quarter of 2024, the Central Bank of Nigeria (CBN) intends to reissue maturing Nigerian Treasury Bills (NTBs) valued at N1.56 trillion.
This calculated action aims to support the government’s finance requirements while controlling liquidity in the banking system.
The Q3 2024 NTB issue calendar lists issuances with a range of tenors, offering investors appealing options while maintaining the stability of the local debt market.
Overview for the Quarter
The CBN has outlined its intention to release NTBs totaling N1.56 trillion for the third quarter of 2024.
By covering the redemption of maturing bills, this re-issuance will preserve the vital equilibrium between managing liquidity and debt servicing.
For 91-day tenors, N179.36 billion, and 182-day tenors, N1.20 trillion, are the specific amounts included in the re-issuance.
Important Dates and Sums
The re-issuance timetable is carefully designed to fully cover the third quarter.
Commencing on June 6, 2024, the bills amount to N221.13 billion, comprising N14.42 billion for 91 days, N26.82 billion for 182 days, and N179.89 billion for 364 days.
The sums are N5.73 billion for 91-day bills, N6.35 billion for 182-day bills, and N32.15 billion for 364-day bills as of June 13, 2024, for a total of N44.23 billion.
The CBN intends to reissue N228.72 billion worth of bills on June 27, 2024, totaling N29.83 billion for 91 days, N30.67 billion for 182 days, and N168.21 billion for 364 days.
The entire amount of N166.11 billion that will be reissued on July 11, 2024, will be N27.11 billion for 91-day bills, N1.49 billion for 182-day bills, and N137,50 billion for 364-day bills.
The amounts, which add up to N277.96 billion, will be N16.48 billion for 91 days, N6.44 billion for 182 days, and N255.04 billion for 364 days on July 25, 2024.
The CBN will reissue N216.09 billion worth of bills in August, totaling N16.59 billion for 91-day, N51.35 billion for 182-day, and N148.15 billion for 364-day bills on August 8, 2024.
Ultimately, N60.69 billion for 91 days, N66.25 billion for 182 days, and N283.04 billion for 364-day notes will be reissued on August 22, 2024, for a total of N409.98 billion.
The government’s strategy attempts to effectively control domestic borrowing while meeting short-term liquidity demands are reflected in these re-issuances.
Things To Note
A crucial element of the CBN’s monetary policy plan is the re-issuance of maturing NTBs.
The CBN hopes to control liquidity, assist with government funding, and stabilise the debt market by reissuing these bills.
A key component of managing liquidity is removing excess liquidity from the financial system, which is necessary to keep inflation under control and monetary stability intact.
Supporting NTBs for government funding offers a dependable source of money for the government’s financial requirements, assisting in the closure of budget deficits without the need for excessive borrowing.
Investor confidence and market efficiency depend on a stable and predictable domestic debt market, which is ensured by the regular re-issuance of NTBs.
The re-issuance of NTB offers investors a fixed-return, low-risk investment alternative. Both individual and institutional investors find NTBs to be an appealing alternative because of the numerous tenors that accommodate varying investment horizons and risk appetites.
