FG raises ₦253 billion from longer term Treasury bills

The Federal Government raised ₦252.88 billion ($827 million) at a treasury bill auction on Wednesday as investors piled demand into the higher yielding one-year debt, traders said on Thursday.

The Central Bank of Nigeria sold ₦177.22 billion of one-year debt at a rate of 13.7 per cent. It auctioned ₦6.09 billion of three-month debt at 12 per cent, and ₦69.57 billion of six-month maturity debt at 13.65 per cent. Total subscription stood at ₦355.2 billion.

Traders said some offshore funds participated at the auction, helping boost dollar liquidity on the currency window for investors to keep naira rates stable. The bank has maintained tightened liquidity to attract foreign buyers.

Nigeria’s debt office plans to raise $2.5 billion through Eurobonds in the first quarter to refinance a portion of its domestic treasury bill portfolio at lower cost.

It repaid ₦198 billion worth of treasury bills in December, instead of rolling them over, to lower costs.

Investors bid as high as 18.5 per cent for the one-year paper. However, the government has been offering debt at lower yields to track declining inflation, which fell for the eleventh straight month in December, to 15.37 per cent.

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