The Central Bank of Nigeria (CBN) has revealed plans by the Federal Government to sell N1.13 trillion (about $3.6 billion) worth of treasury bills between March 16 and June 1, 2017. This will be used to plug the deficit in the nation’s budget, manage the liquidity shortfall in the banking system and curb the rising inflation in the economy.

The apex bank aims to auction a 91-days bill of N243 billion, a 182-days bill of N198 billion and a 364-day bill of N689 billion.

CBN sells treasury bills twice a month. Last month, the Government announced that it would raise N142.43 billion (about $455.6 million) from the sale of short-term treasury bills.

Nigeria has a deficit of N2.36 trillion ($7.5billion) in the estimated N7.298 trillion ($23.3billion) budget for this year. In regards to the deficit’s financing, Minister of Budget and National Planning, Udoma Udo Udoma, said the deficit would be funded mostly by borrowings of which 46% will be from external sources, while the remaining 54% will come from domestic sources.

Anita Fatunji