CBN Gains N1.55 Trillion Interest From T-Bills Sales In First Half Of 2024

Twelve Treasury Bills (T-Bills) auctions were held successfully in the first half of 2024, resulting in interest payments for the Central Bank of Nigeria estimated to have cost N1.55 trillion.

In 2024, interest expenses amounted to N205.63 billion, which was 654.7% more than during the same period in the preceding year.

This is based on an assessment of the tenor, interest payments, and quantity of T-Bills sold during the time in question.

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Data from the apex bank reveals that the apex bank has sold Treasury Bills worth N8.4 trillion in the first half of the year for tenors ranging from 91-days, 182-days and 364-day bills.

According to our findings, the stop rate, which is the interest rates accepted from the bids on offer, ranged from as low as 2.44% for some 91-day bills to as high as 21.49% for 364-day bills within the period under review.

The high interest cost is largely due to the central bank’s hawkish monetary policy aimed at curbing rising inflation rate. The central bank jacked up rates aggressively early in 2024 as part of its policy tools to mop up money supply from the economy.