Echotitbits – Nigeria News

Tag: Treasury bills

  • DMO raises about ₦1.1tn at first 2026 T-bills auction as stop rates rise

    DMO raises about ₦1.1tn at first 2026 T-bills auction as stop rates rise

    According to The Guardian Nigeria, the Debt Management Office secured about ₦1.144 trillion at its first Nigerian Treasury Bills auction of 2026, with stop rates climbing across all maturities.

    The report notes the 364-day paper dominated the auction and the stop rate for the one-year tenor rose sharply, reflecting investor demand for higher yields in a high-rate, high-inflation environment.

    For households and corporates, higher T-bill yields can improve returns on risk-free assets, but they can also raise government debt-service costs and crowd out private-sector borrowing.

    Market watchers will be tracking whether rates stabilise or rise further, and how monetary policy signals influence the next auction rounds.

    Echotitbits take: Elevated T-bill yields are a double-edged sword—great for savers, tough for fiscal space. Watch the CBN’s liquidity stance and whether banks reprice loans upward in response.

    Source: The Guardian Nigeria – https://guardian.ng/news/fg-raises-n1-1tr-from-first-2026-treasury-bills-auction/ 9 January 2026

    The Guardian Nigeria 2026-01-09

    Photo Credit: The Guardian Nigeria

  • FG’s Deficit Funding: N6.1trn Raised Locally in Six Months

    FG’s Deficit Funding: N6.1trn Raised Locally in Six Months

    Photo Credit: The Punch
    2025-12-25 09:10:00

    In a budget-performance update cited by The Punch, Nigeria’s federal government reportedly raised about N6.10 trillion from domestic sources in the first half of 2025 to help plug a wide fiscal gap. The report points to a deficit of roughly N5.70 trillion, with financing largely driven by local borrowing instruments.

    The same performance data indicates debt service pressure remains heavy, with large outflows to service obligations even as revenues lag spending needs. That combination—high deficits and high debt service—continues to compress fiscal space for social and capital priorities.

    The report also suggests the borrowing mix leaned heavily on bonds and other local issuances, reinforcing the concern that domestic credit may be crowded toward government paper instead of private-sector lending.

    Corroborating the same Budget Office picture, another outlet reported the government had to finance the deficit through “domestic borrowing… of N5.70tn” and proceeds including “privatisation… N64.92bn,” while a separate report noted “debt service was N4.44tn,” underscoring the weight of repayments in the fiscal structure.

    Echotitbits take: Nigeria’s deficit story is increasingly a debt-service story. Watch for (1) whether revenue reforms lift the non-oil base fast enough, and (2) whether domestic borrowing costs ease—because a sustained high-rate environment makes deficits more expensive and squeezes development spending.

    Source: The Punch — December 25, 2025 (https://punchng.com/budget-deficit-fg-raises-n6tn-locally-in-six-months/)

    The Punch 2025-12-25