Nigeria Plans N310bn Treasury Bills Auction On March 1

Nigeria plans to sell N310.22 billion ($984.83 million) of short-dated treasury bills at an auction on March 1, the central bank said on Tuesday.
It plans to raise N26.14 billion in three-month debt, N62 billion in six-month bills and N222.08 billion in one-year notes, using a Dutch auction system. Payment will be due the day after the auction.
The Central Bank of Nigeria (CBN) issues treasury bills twice a month to finance the budget deficit, help manage commercial lenders’ liquidity and curb rising inflation.
Annual inflation in Nigeria climbed to 18.72 per cent in January, its 12th straight monthly rise. The trend was worsened by dollar shortages, which have crippled the import-dependent economy and triggered the first recession in 25 years.
The government is also facing funding challenges due to the low price of oil. It expects the budget deficit to widen to N2.36 trillion this year as it tries to spend its way of out of the recession.
More than half of the deficit will be funded through local borrowing, the government has said.
© Reuters News

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