CBN Unveils Plan to Settle N1.64tn Treasury Bills in Q2 2024

The Central Bank of Nigeria (CBN) has revealed its strategy to settle Treasury Bills (TBs) worth N1.64 trillion during the second quarter of 2024. The initiative, it was learnt, is as part of the apex bank’s Nigeria Treasury Bills Issue programme.

This, analysts said, underscores the CBN’s commitment to managing liquidity and meeting financial obligations effectively.

Treasury Bills serve are shortterm debt instruments utilised by central banks to raise funds from the public, while also serving as a mechanism to regulate the money supply within the economy.

Documents seen by THISDAY showed that the Treasury Bills settlement program is scheduled to commence on March 7th and will conclude on May 23rd, 2024. During this period, the CBN will focus on settling TBs with varying tenors, including N414.29 billion on 91 days, N43.74 billion on 182 days, and a substantial N1.18 trillion on 364 days.

A breakdown of the settlement plan showed that the CBN aims to address maturing TBs on a monthly basis. In March, it plans to settle N660.62 billion worth of TBs, with allocations of N32.73 billion for 91 days, N12.97 billion for 182 days, and N614.92 billion for 364 days.

In April, the CBN will settle N292.17 billion in TBs, including N10.61 billion for 91 days, N15.97 billion for 182 days, and N265.59 billion for 364 days.

Moving to May, the CBN’s TB settlement is projected to reach N688.3 billion, with allocations of N362.9 billion for 91 days, N14.7 billion for 182 days, and N302.67 billion for 364 days.

According to market watchers this comprehensive settlement plan by the CBN reflects its strategic approach to managing financial obligations and maintaining stability within the economy.

“It provides investors with an opportunity to engage in short-term financial instruments while contributing to the overall liquidity dynamics of the nation, “said a market watcher.