Central Bank of Nigeria (CBN) has successfully sold treasury bills worth a staggering N1 trillion at its bi-weekly auction held on Wednesday, preceding the upcoming February 26 and 27 Monetary Policy Committee meeting.
This substantial increase in the volume of treasury bills included an unprecedented N600 billion earmarked for the 364-day bills, along with N200 billion each for the 182-day and 91-day bills.
The N600 billion allocation for the 364-day tenure marked an unparalleled figure, making this auction a significant milestone in CBN’s history, with records dating back to 2001.
In the previous month’s auction, the CBN had sold treasury bills totaling N381.2 billion across various maturities, including 91, 182, and 364 days.
During the recent auction, the interest rates for these maturities were recorded at 5 per cent for the 91-day bills, 7.15 per cent for the 182-day bills, and 11.54 per cent for the 364-day bills, respectively. The cumulative N1 trillion sale further highlights the robust activity in the treasury bills market.
Meanwhile, Nigeria’s money supply stood at over N78 trillion as of December 2023. Many analysts attribute this substantial money supply to the nation’s accelerating inflation, which reached 28.92 per cent in December.