The Central Bank of Nigeria (CBN) plans to re-issue maturing Nigerian Treasury Bills (NTBs) worth N1.56 trillion in the third quarter of 2024.
This strategic move is designed to manage liquidity within the financial system and support the government’s financing needs.
The NTB issue calendar for Q3 2024 outlines issuances across various tenors, providing attractive opportunities for investors while ensuring the stability of the domestic debt market.
Quarterly Overview
For the third quarter of 2024, the CBN has detailed its plan to reissue a total of N1.56 trillion worth of NTBs.
This re-issuance will cover the redemption of maturing bills, thereby maintaining the critical balance between debt servicing and liquidity management.
Specifically, the re-issuance includes N170.86 billion for 91-day tenors, N189.36 billion for 182-day tenors, and N1.20 trillion for 364-day tenors.
Key Dates and Amounts
The re-issuance schedule is meticulously planned to cover the third quarter comprehensively.
- It begins on June 6, 2024, with N14.42 billion for 91 days, N26.82 billion for 182 days, and N179.89 billion for 364-day bills, totalling N221.13 billion.
- On June 13, 2024, the amounts are N5.73 billion for 91-day, N6.35 billion for 182-day, and N32.15 billion for 364-day bills, totalling N44.23 billion.
- On June 27, 2024, the CBN plans to re-issue N29.83 billion for 91 days, N30.67 billion for 182 days, and N168.21 billion for 364-day bills, totalling N228.72 billion.
- On July 11, 2024, the re-issuance will include N27.11 billion for 91 days, N1.49 billion for 182 days, and N137,50 billion for 364-day bills, totalling N166.11 billion.
- On July 25, 2024, the amounts will be N16.48 billion for 91 days, N6.44 billion for 182 days, and N255.04 billion for 364-day bills, totalling N277.96 billion.
- In August, the CBN will re-issue N16.59 billion for 91-day, N51.35 billion for 182-day, and N148.15 billion for 364-day bills on August 8, 2024, totalling N216.09 billion.
- Finally, on August 22, 2024, the re-issuance will include N60.69 billion for 91 days, N66.25 billion for 182 days, and N283.04 billion for 364-day bills, totalling N409.98 billion.
These re-issuances reflect the government’s strategic efforts to manage domestic borrowing efficiently while addressing short-term liquidity needs.
What you should know
- The re-issuance of maturing NTBs is a critical component of the CBN’s monetary policy strategy.
- By re-issuing these bills, the CBN aims to manage liquidity, support government financing, and stabilize the debt market.
- Managing liquidity involves absorbing excess liquidity in the financial system, which is essential for controlling inflation and maintaining monetary stability.
- Supporting government financing through NTBs provides a reliable source of funds for the government’s budgetary needs, helping to bridge fiscal deficits without resorting to excessive borrowing.
- Regular re-issuance of NTBs ensures a stable and predictable domestic debt market, which is vital for investor confidence and market efficiency.
For investors, the NTB re-issuance presents a low-risk investment option with fixed returns. The various tenors cater to different investment horizons and risk appetites, making NTBs an attractive option for both individual and institutional investors.