Naira
Naira

Nigeria sold 110.93 billion naira ($557.44 million) worth of short-dated Treasury bills at an auction on Wednesday with higher yields than at the previous sales reflecting the sharp spike in inflation growth in Africa’s biggest economy, central bank data showed on Thursday.

The bank sold 32.43 billion naira in the three-month paper at 8.10 percent, compared with 7.99 percent at the last auction on May 4.

A total of 22.82 billion naira of the six-month bills were sold at 9.20 percent against 9 percent previously, while 55.68 billion naira of the one-year debt was sold at 12.48 percent compared with 11.05 percent previously.

Investors demanded a total of 216.5 billion naira against 261.52 billion subscription at the last auction.

Annual inflation in Nigeria quickened to a near six-year high of 13.7 percent in April, from 12.8 percent the previous month in part due to rising petrol and electricity prices, the National Bureau of Statistics said on Monday, stoking expectations of another rate hike.

Nigeria’s rate-setting Monetary Policy Committee (MPC) is scheduled to meet on Tuesday to take a decision on benchmark interest rates and other financial tools to curb growing inflation in the West African country.

 


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