The federal government hopes to raise about N142.43 billion
(about $453.60 million) from the issuance of short-term treasury bills to be
auctioned on February 15, the Central Bank of Nigeria, CBN, said on Tuesday.
The auction is expected to
raise about N32.43 billion in three-month debt, N30 billion in six-month bills
and N80 billion in one-year notes, through the Dutch auction system.
Payment will be due the
day after the auction.
The treasury bills are to
fund the national budget deficit, manage banking system liquidity squeeze and
curb rising inflation in the economy.
With an outlay of N7.298
trillion, the 2017 budget has overall projected fiscal deficit of N2.36
trillion (about 2.18 per cent of GDP).
The Minister of Budget and National Planning, Udoma Udoma, had
said the deficit would be financed mainly by borrowings, projected at N2.32
trillion, consisting external sources (N1.067 trillion, or 46 per cent) and
domestic sources N1.25 trillion.
During the consultative
meeting with private sector operators on Monday, Mr. Udoma said the federal
government was targeting at least seven per cent growth in the economy by 2020,
amid efforts to lift the country out of its first recession in 25 years.
Besides, he said, as part
of a medium-term economic recovery plan, government was also determined to
ensure growth in the country’s gross domestic, stable foreign exchange rates,
and a diversified and inclusive growth.
Last week, Nigeria raised
a total of N302.4 billion in treasury bills, with more than the N242 billion
planned due to strong demand for the one-year debt.
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