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Nigeria raises 176bn naira worth of treasury bills

Financial

Nigeria has raised 176 billion naira ($576 million) worth of treasury bills at an auction on Wednesday, traders said.

The central bank offered 6 billion naira of three-month paper, 30 billion naira of six-month bills and 140 billion naira of one-year notes.

The bank issues treasury bills twice a month to help the government to finance its budget deficit, curb money supply growth and provide an avenue for lenders to manage liquidity.

Total demand for the notes stood at 229.9 billion naira as investors were demanding as high as 20 percent yields for the one-year paper, which sold for 13.7 percent. It sold the one-year paper at 14.3 percent in January.

The bank auctioned the three-month bill at 11.95 percent from 12.55 percent last month and the six-month note at 13.65 percent from 13.92 percent.

The government has been working to lower its borrowing costs, particularly as inflation fell for the 12th time in a row on Wednesday. The government also plans to refinance $2.5 billion worth of treasury bills from the proceeds of a planned eurobond sale this first quarter. ($1 = 305.40 naira)

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