By COMFORT NJIONYE
The Central Bank of Nigeria has disclosed its plans to sell 133.24 billion naira ($424 mln) worth of treasury bills at an auction next week.
According to a source from the bank it plans to offer 28.12 billion naira worth of three-month debt, 55.12 billion naira in six-month bill and 50 billion naira in one-year note, using the Dutch auction system on June 21. Settlement will be made next day after the auction.
On Friday, the monetary body said it would issue 1.24 trillion naira worth of the treasury notes in the third quarter, starting from June 15 to August 31.
The central bank issues treasury bills twice on monthly basis to help the government fund its budget deficit, support commercial lenders in managing liquidity and curb inflation.
The West African country expects a budget deficit of 2.36 trillion naira this year as it tries to spend its way out of a recession. It expects to raise money to cover more than half the deficit from the local market.