FG auctions T bills worth N120bn

The Federal Government on Wednesday auctioned  Treasury bills viz: 91-day bills worth N36.786 billion, 182-daybills worth N39.175 billion and 364-day bills worth N120 billion via primary market.

In the week ahead, the Debt Management Office (DMO) is scheduled to conduct its first Primary Market Auction in 2017.

The DMO will be re-issuing N40.0 billion of the JUL 2012, N50.0 billion of the JAN 2026 and N40.0 billion of the MAR 2036 instruments.

This is just as Nigeria is expected to auction between N430 billion in local currency bonds, in the first quarter of 2017.

According to the nation’s debt issuance calendar, the 2027 bond will be a new issue in March.

The Debt Management Office (DMO) is expected to auction between N110 billion, and N140 billion worth of bonds maturing in 2021, and about N105 billion of the bond maturing in 2026.

The DMO will sell N55 billion of the March 2027 bond, while N130 billion of the 2036 bond will be offered.

Nigeria has proposed a budget deficit of N2.36 trillion for year 2017.

Meanwhile, the government hopes to fund the N2.36 trillion budget deficit, by borrowing N1.254 trillion domestically and N1.067 trillion from outside Nigeria.

Similarly, the DMO has fixed the maximum limit for the Federal Government’s domestic and external borrowing at $22.08 billion for the 2017 fiscal year.

This is part of policy recommendations of the DMO contained in its 2016 report of the annual national debt sustainability analysis.

According to the management office, new domestic borrowing has been pegged at $5.52 billion, while new external borrowing is put at 16.56 billion for 2017.