By Modupe Gbadeyanka
On July 19, 2017, the Central Bank of Nigeria (CBN) will auction N204.95 billion in treasury bills, Business Post has learnt.
Two times every month, the apex bank issues treasury bills aimed to raise funds for government to finance budget deficit.
Information gathered by our correspondent revealed that the central bank hopes to raise N36.78 billion in three-month bills, N39.17 billion in six-month bills and N129 billion in one-year bills.
Treasury Bills are short-term debt instruments issued by the Federal Government through the central bank to provide short term funding for the government.
They are by nature, the most liquid money market securities and are backed by the guarantee of the Federal Government.
They are usually issued for tenors of 91 days, 182 days and 364 days at the primary market auction held fortnightly by the Central Bank of Nigeria.
The interest rate (stop rate) at the auction is not fixed but fluctuates based on demand and amount offered by the apex bank.
However, there are other tenors available in the secondary market based on prevailing rates.
Dipo Olowookere 
Adedapo Adesanya