CBN sells N117bn TBs, as yields broadly flat

The Central Bank of Nigeria (CBN) on behalf of the Federal Government of Nigeria sold N117.16 billion naira ($372.46 million) in short-dated treasury bills at an auction on Wednesday, with yields broadly unchanged from rates at the previous auction, data from the CBN showed on Thursday.

The statistics showed that the largest economy in Africa N26.14 billion worth of the 3-month paper at 13.99 percent, the same rate fetched by similar tenor paper at the last auction in November, 2016.

A total of 11 billion Naira of 6-month debt was sold at 17.49 percent, slightly higher than 17.40 percent at the previous auction, while a total of 80.02 billion Naira of 1-year bills was sold at 18.69 percent, compared with 18.70 percent previously.

The data also showed that total subscriptions stood at 156.56 billion naira against 158.07 billion naira at the last auction.

The Federal Government usually issue treasury bills to raise cash in order to fund the budget deficit, manage banking system liquidity and curb rising inflation.

Meanwhile, the Nigerian Gross Domestic Product (GDP) shrank 2.24 per cent year-on-year in the third quarter of 2016, following a 2.06 percent decline in the previous period, against the market expectations of a 2.58 per cent.

Lower oil prices continued to hurt the oil sector which slumped for the fourth straight quarter while the non-oil sector was flat after shrinking in the previous two periods.

As a result of sharp drop of revenue from the oil sector, which accounted for 8.19 percent of the GDP compared to 10.27 percent a year earlier.

Consequently, the Federal Government through its Finance Minister, Mrs. Kemi Adeosun on Thursday said it had directed the Chief Executives of 31 revenue generating agencies that unremitted a total sum of N450bn to come up with a repayment plan.

She said already, a demand notice to that effect had been issued by the ministry to the affected agencies adding that a meeting with them had been scheduled for December 6.

She gave some of the agencies that are affected by the directive as the Central Bank of Nigeria, the Securities and Exchange Commission, Petroleum Technology Development Fund and the National Agency for Food and Drug Administration and Control