FGN Plans to sell N1.76 billion T-Bills in Q3 2025
The issuance calendar for Nigerian Treasury Bills (NTB) by the Central Bank of Nigeria (CBN) for the third quarter of 2025 indicates that the Federal Government intends to raise ₦1.76 billion through Nigerian Treasury Bills auctions, in light of ₦1.98 billion in maturing obligations during this period.
This planned borrowing represents a continuation of efforts to manage liquidity and refinance short-term debt amidst fiscal pressures. The issuance programme encompasses 91-day, 182-day, and 364-day tenures, with the 364-day instrument making up the majority of the offer at ₦1.19 billion, reflecting a preference for securing longer-term funds at current interest rates.
The 91-day and 182-day instruments are projected to generate ₦340 million and ₦230 million, respectively. The auction calendar shows that active issuances are primarily scheduled for July and August, with fewer maturities and offerings anticipated in September.
This borrowing strategy continues the trend of utilizing the domestic money market to address the government’s short-term funding requirements while sustaining investor confidence through consistent auctions. However, while it offers temporary fiscal relief, it also underscores ongoing structural fiscal challenges, such as the increasing cost of debt servicing and sluggish revenue growth.
To enhance long-term fiscal sustainability, there is an escalating necessity to supplement these short-term borrowing initiatives with comprehensive public finance reforms. Critical areas for improvement include boosting non-oil revenue generation, streamlining recurrent expenditures, and expanding the domestic debt market to incorporate longer-term instruments that mitigate refinancing risks and foster macroeconomic stability.
