Treasury bills valued at N1.64 trillion were up for auction by the Central Bank of Nigeria (CBN).
The higher stop rates offered, according to the Nigerian Treasury Bills (NTBs) on March 27, 2024, drew a lot of attention from investors, which supports the rising trust in Nigeria’s financial instruments.
According to the research, there were three different types of NTBs available, with tenors ranging from 91 days to 182 days to 364 days. The allotment date was March 28, 2024, one day after the auction date of March 27, 2024. Among the three categories, 182-day NTBs with an offered sum of N1.560 billion and a substantial subscription of N58.184 billion shown the highest demand.
These medium-term notes had a maturity date of September 26, 2024, and their bid range was 16.0000 to 22.0000 percent, indicating strong market optimism. The final stop rate of 17.0000 percent was established in response to the growing interest in mid-term investment vehicles. The 364-Day bills, possessing the longest tenor, experienced an enormous voter participation.
It received a subscription of N2.483 trillion with an offer of N142.162 billion, demonstrating a notable increase in investor confidence. The maturity date of these bills is March 27, 2025. More bids were made for the 364-day tenor, with a range of 16.2390 to 25.4900 percent, demonstrating the wide range of investor expectations.
In the end, a stop rate of 21.5000 percent was chosen, which reflected the longer-term investors’ desire for a greater yield. The shortest Treasury bills, which had a maturity date of 91 days, were issued for N17.606 billion and attracted N76.812 billion in subscriptions, suggesting a moderate degree of demand. The maturity date of the bills is set on June 27, 2024. The bid range for this category was quite narrow, spanning from 15.0000 percent to 22.0000 percent, indicating a cautious stance from the investors. For these bills, a competitive 16.2400 percent was the stop rate.
Banks are instructed by the federal government to deduct 0.375 percent stamp duty from all credit facilities in the interim.
According to the directive, the principle loan amount would be deducted. Some consumers who got text messages conveying the directive confirmed this occurrence.
A portion of the text message stated: “Dear Valued Customer, we write to inform you that the Federal Government of Nigeria has directed that all banks remit stamp duty on all loans. In line with this directive, 0.375 per cent of every principal loan amount disbursed will be debited and remitted to the Federal Government of Nigeria. However, all existing approved loans remain unchanged and are to be fully repaid in line with the terms and conditions. We are committed to offering you exceptional service every step of the way.”
