The Central Bank of Nigeria (CBN) has published its Treasury Bills programme for January–March 2020, indicating that it planned to raise about ₦847.4 billion in cash.
The disclosure was made by the CBN in the Treasury Bill programme document released on its website, covering the first quarter of 2020. The N847.4 treasury bill issued for Q1 2019 represents a drop by N155.2 billion when compared to the over 1 trillion issued in Q4 2019.
The breakdown of the document shows that N86.6 billion will be raised in the 91-day maturity period, N163 billion for 182 days and N597.7 billion for 364 days maturity period.
The CBN sells T-bills on a bi-weekly basis to investors and is one of the safest investments available. Interests are paid upfront and the principal paid in full upon maturity.
T-bills are mostly sourced from financial institutions. Once again, the bank issues treasury bills regularly as a control measure to help banks mop up excess liquidity and control the money supply.