The Federal Government, through the Central Bank of Nigeria, recently raised N284.26bn in the latest Nigerian Treasury Bills auction, bringing its T-Bills debts to N10.4tn between December 2023 and March 2024, marking a 60% increase in just three months.
The auction attracted significant investor interest, with total subscriptions exceeding N773.98bn, far surpassing the total offer of N228.72bn. This outcome indicates strong demand from investors seeking yield while providing funding for the government’s short-term expenditures.
The government raised N297bn from the June bond auction, serving various purposes in debt management and fund-raising. The T-Bills and FGN bonds are considered risk-free investments, crucial for the government’s debt strategy.
Additionally, the recent auction showed substantial oversubscription across different tenors, reflecting investor confidence in Nigerian Treasury Bills as a safe investment amidst economic conditions. The government’s pursuit of alternative financing has led to record T-Bills debts.
The critical role of bonds and treasury bills was highlighted by Professor Tella, emphasizing their significance in raising funds and managing liquidity in the financial system.