CBN Plans N142bn Treasury Bill Auction on Feb 15

• CBN Plans N142bn Treasury Bill Auction on Feb 15

The Central Bank of Nigeria (CBN) on Tuesday said it plans to raise about N142.43 billion in short-dated Treasury bills at an auction on February 15.

According to Reuters, the bank said it would raise N32.43 billion in three-month debt, 30 billion in six-month bills and 80 billion in one-year notes, using a Dutch auction system. Payment will be due the day after the auction.

Nigeria issues Treasury bills to fund its budget deficit, manage banking system liquidity and curb rising inflation.

Last week, Nigeria raised a total of N302.4 billion in Treasury bills, more than the 242 billion planned due to strong demand for the one-year debt.

The central bank at the auction offered a yield above its benchmark interest rate to lure investors in the face of galloping inflation.

Its annual inflation rate rose in December to 18.55 percent, its highest for more than 11 years and the eleventh straight monthly rise.