Nigeria’s Federal Government in 2020, raised N3.62 trillion through the issue of treasury bills (NT-Bills) across various tenor buckets.

The Federal Government of Nigeria, through the Central Bank of Nigeria, issues Nigerian Treasury Bills to provide short-term funding for government budget deficit. The treasury bills are usually issued through a competitive bidding process, quoted and traded on FMDQ’s platform.

A breakdown of the NT-Bills issues according to a report by FSDH report show that N408.10 billion was offered for 91-day, N781.78 billion for 182-day and N2.43 trillion for 364-day tenors at average stop rates of 1.62 percent, 2.17 percent, and 3.49 percent, respectively.

Total subscription worth N8.11 trillion were received across 91-day (N1.22 trillion), 182-day (N1.26 trillion), and 364-day (N5.63 trillion) tenors as against the bills offered worth N402.34 billion, N500.83 billion, and N2.33 trillion, respectively.

However, the NT-Bills secondary market closed on a negative note on Thursday with average yield across the curve increasing by 2 bps to close at 0.42 percent from 0.40 percent on the previous day. The average yield across long-term maturities widened by 2 bps, while average yields across short-term and medium-term maturities closed flat at 0.17 percent and 0.33 percent, respectively.

Read also: Small business operators receive interest free loans in Akwa Ibom

Yields on five bills advanced with the 15-Jul-21 maturity bill recorded the highest yield increase of 9 bps, while yields on 15 bills remained unchanged.

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At the end of trading on Thursday, the Overnight (O/N) rate and the Open Buy Back (OBB) rate remained unchanged at 0.75 percent and 0.38 percent, respectively.

Money market rates remained low supported by buoyant system liquidity. However, “rates could spike up tomorrow as the market funds the bi-weekly foreign exchange retail auction,” analysts at FSDH research said.

At the foreign exchange market, Naira appreciated by 0.21 percent as the dollar was quoted at N393.67 as against the last close of N394.50 on Wednesday at the Investors and Exporters (I&E) forex window. Most participants maintained bids between N388.00 and N413.05 per dollar.

The foreign exchange market closed on Thursday with naira unchanged at N470 against the dollar at both the Bureaux De Change (BDC) segment and the parallel market since December 29, 2020.

According to the report, FGN bonds secondary market closed on a positive note today, as the average bond yield across the curve cleared lower by 5 bps to close at 3.23 percent from 3.28 percent on the previous day.

The average yield across the short tenor of the curve declined by 10 bps, while average yields across medium tenor and long tenor of the curve widened by 12 bps and 6 bps, respectively. The 27-APR-2023 maturity bond was the best performer with a decrease in the yield of 33 bps, while the 18-APR-2037 maturity bond was the worst performer with an increase in yield of 79 bps.

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.

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