In a financial spectacle, the Central Bank of Nigeria (CBN) took center stage, orchestrating a record-breaking sale of N1 trillion treasury bills during its bi-weekly auction held before the February 26 and 27 Monetary Policy Committee meeting.
This remarkable auction witnessed an extraordinary surge in treasury bill volume, with a staggering N1 trillion on the auction block. The allocation breakdown includes a monumental N600 billion designated for the 364-day bills and N200 billion each for the 182-day and 91-day bills.
The unprecedented N600 billion for the 364-day tenure marks a historical milestone, making the cumulative N1 trillion sale unparalleled, with records tracing back to 2001. In a sharp contrast to the previous month’s auction, where the CBN sold treasury bills totaling N381.2 billion across various maturities, this recent feat demonstrates a substantial escalation.
For context, the interest rates for the respective maturities in the previous auction were 5% for the 91-day bills, 7.15% for the 182-day bills, and 11.54% for the 364-day bills. This newfound surge in treasury bill sales adds a dynamic layer to Nigeria’s financial landscape.
As the country’s money supply surpasses N78 trillion as of December 2023, analysts attribute this figure to the accelerating inflation rate, which reached 28.92% in the same month. The trillion Naira tango orchestrated by the CBN paints a vivid picture of the nation’s evolving economic dynamics and the central bank’s strategic maneuvers.