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FG borrows N183Billion via short-dated TBs

The Federal Government borrowed N183.24bn via Treasury bills at an auction on Wednesday, with mixed yields on all the tenors, data from Debt Management Office showed on Thursday.

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The DMO raised N48.10bn of three-month paper at 14 per cent, down from 14.38 per cent it sold at an auction on August 31.

It also sold N48.45bn worth of the six-month paper at 17.77 per cent, higher than 17.50 per cent previously.

A total of N86.69bn was sold in the one-year debt at 18.48 per cent against 18.42 per cent at the last auction.

The DMO had last Tuesday said the government would borrow N120bn ($387m) in local-currency denominated bonds at an auction on September 14.

The debt office said it would raise N40bn each from debt maturing in 2021, 2026 and 2036, using the Dutch auction system.

All the bonds were re-openings of previously issued debt.

The Federal Government has estimated it will borrow around N900bn from the local debt market this year to fund a budget deficit projected at N2.2tn.

The Central Bank of Nigeria has said it is planning to borrow N1.77bn via Treasury Bills in the last three months of the year.

In its fourth quarter Treasury bill issue programme released last Monday, the CBN said it would raise about N815.37bn, comprising 91 days, 182 days and 364 days debt instruments

In addition to the above, the central bank was also planning to raise about N952.05bn as rollover in the three categories of the instruments.

This followed improved naira cash liquidity after the disbursal of July budgetary allocations to Federal Government agencies.

The Federal Government distributes revenues from crude exports and taxes among the three tiers of government every month.

At the CBN’s Monetary Policy Committee meeting in July, the central bank raised its benchmark interest rate (Monetary Policy Rate) to 14 per cent in a bid to tighten liquidity.

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