The Federal Government of Nigeria, through the Central Bank of Nigeria (CBN), has launched a N1.76 trillion Treasury Bills (TBs) issuance program for the third quarter of 2025 (Q3’25) to finance the 2025 budget. This marks a 12.8% increase from the N1.56 trillion raised in Q3’24, as outlined in the CBN’s Nigeria Treasury Bills Issue Programme released on Monday.
Program Details
Treasury Bills, short-term debt instruments with maturities under one year, are used by the CBN to borrow from the public on behalf of the government and manage money supply. The Q3’25 program, running from July 2 to September 24, with settlements from July 3 to September 25, allocates N340 billion for 91-day bills, N230 billion for 182-day bills, and N1.19 trillion for 364-day bills.
In July, the CBN plans to issue N540 billion in TBs, including N150 billion (91 days), N40 billion (182 days), and N350 billion (364 days). August will see N450 billion issued, with N110 billion (91 days), N50 billion (182 days), and N290 billion (364 days). September’s issuance totals N770 billion, comprising N80 billion (91 days), N140 billion (182 days), and N550 billion (364 days).
Economic Context
The increased borrowing aligns with the government’s fiscal strategy, as confirmed by the Debt Management Office, to address budgetary needs amid economic challenges like inflation and naira volatility. The CBN’s TB sales also serve as a tool to regulate liquidity, critical in stabilizing Nigeria’s economy. Recent reports highlight banks’ deposits with the CBN soaring 907% to N68.9 trillion, reflecting robust financial sector activity supporting government borrowing.
Implications
The N1.76 trillion TB issuance underscores Nigeria’s reliance on domestic debt markets to fund public spending. Analysts note that while TBs offer safe investment options, the rising borrowing could strain fiscal space if not paired with revenue-enhancing reforms. The program’s success will depend on investor appetite and the CBN’s ability to manage inflationary pressures effectively.
