The Central Bank of Nigeria, CBN, has on Wednesday announced it will issue a total of N512.78 billion treasury bills in the second quarter of 2020.
The disclosure was made by the CBN in the Treasury Bill Issuance Programme released on its website. The N512.7 billion treasury bill planned for Q2 2020 represents a drop of N361.7 billion when compared to the over N874.4 billion issued in Q1 2020.
The apex bank will in the next three months issue t-bills consisting of a total of N94.25billion 91-day tenor bills, N86.18billion for 182 day-tenor and N332.35billion for 364 day-tenor.
The CBN sells t-bills on a bi-weekly basis to investors to help the Federal Government fund its budget deficit, mop up excess liquidity in the system and curb inflation.
Treasury bills are issued when the government needs money for a short period while bonds are issued when it needs debt for more than say five years.
The issuance of treasury bills is also used as a mechanism to control the circulation of funds in the economy.