Nigeria to auction N142bn Treasury bill Feb. 15

Nigeria plans to raise about 142.43 billion naira ($453.60 million) in short-dated Treasury bills at an auction on Feb. 15, the Central Bank of Nigeria (CBN) said on Tuesday.

The bank said it would raise 32.43 billion naira in three-month debt, 30 billion in six-month bills and 80 billion in one-year notes, using a Dutch auction system. Payment will be due the day after the auction.

Nigeria issues Treasury bills to fund its budget deficit, manage banking system liquidity and curb rising inflation.

Last week, Nigeria raised a total of 302.4 billion naira in Treasury bills, more than the 242 billion planned due to strong demand for the one-year debt. The central bank at the auction offered a yield above its benchmark interest rate to lure investors in the face of galloping inflation.

Its annual inflation rate rose in December to 18.55 percent, its highest for more than 11 years and the eleventh straight monthly rise.

Source: Reuters