Nigeria to raise N107.05 bln at T/Bills auction, retires N253.9 bln mature debt
Nigeria plans to raise a total of N107.05 billion by selling its short-dated Treasury bills at an auction this Wednesday across the three tenors.
The Debt Management Office (DMO) will issue N5.85 billion in the three months paper, N26.60 billion in the six months treasury and N74.60 billion worth of the 1-year debt at the auction.
“We expect strong demand from locals at the NTB auction scheduled to hold this Wednesday. The marginal
rates should close markedly lower than at the last auction,” the local unit of Citibank wrote in a note to clients on Monday.
Nigeria sells treasury bills twice monthly to raise cash to back up government expenditures ahead of revenue collections and also to finance part of budget deficits and help commercial banks to manage their liquidity.
The debt instruments also serve as investment channels for local and offshore investors, who are seeking higher returns on their funds.
However, yields on local debts have pair against other assets as Nigeria’s fixed income rate decline primarily due to government decision to cut back on borrowing cost and the impact of the increase in market liquidity.
The DMO is also expected to retire about N253.90 billion, comprising of N107.05 billion in primary market Treasury bills and N146.90 billion worth of the Open Market Operations (OMO) paper.