Federal Government has raised N172.85 billion naira in Treasury bills with maturities from 3 months to one year, at mixed returns with strong local investor demand for the note at Wednesday’s auction.
Data from the Central Bank of Nigeria, CBN, yesterday showed that total bids for the debts stood at N283.58 billion compared with N63.55 billion at the previous auction on August 19, 2015, boosted by increased naira liquidity in the money market from budgetary allocations for the month of July.
The bank sold N17.85 billion naira of the 3-month debt at 10 per cent, unchanged from the August 19 auction.
It auctioned N50 billion of six-month bills at 13.50 per cent, up from 13 per cent previously, while selling N105 billion of the 1-year debt at 14.69 per cent against 14.71 per cent at the August 5 auction when one year paper was last issued.
The Managing Director/Chief Executive Officer of Financial Derivatives Company Limited, Mr. Bismarck Rewane, said that the government is borrowing money because its revenue is dropping.
According to him, the government should have invested the money accrued from the excess crude account instead of spending it.
The CBN had in June said it plans to borrow about N872.96billion in new Treasury bills issues between June 18 and September 3.
Data released by the CBN had shown that it would auction N215.12 billion worth of the three-month paper, N238.5billion in the six-month debt and N419.34 billion worth in the one-year paper.
The total debt proposed for the third quarter is 12.3 per cent short of the N995.5 billion raised in the second quarter of the year.

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