The Central Bank of Nigeria has initiated the sale of Treasury Bills worth N1.76 trillion for the third quarter of 2025, representing a significant escalation in the Federal Government’s borrowing activities to fund the 2025 national budget.
The CBN disclosed this ambitious target in its Nigeria Treasury Bills Issue Programme for Q3 2025, revealing a 12.8 percent increase from the N1.56 trillion raised during the corresponding period in 2024. The substantial rise reflects the government’s growing financing requirements amid current economic challenges.
Treasury Bills, which serve as short-term debt instruments with maturities of less than one year, function as a dual-purpose tool for the CBN. The apex bank uses these instruments to borrow funds on behalf of the federal government while simultaneously managing liquidity levels within the Nigerian economy.
The comprehensive issuance programme commenced on July 2 and is scheduled to run through September 24, with settlement dates beginning July 3 and concluding on September 25. The CBN has structured the programme across three distinct tenors to accommodate various investor preferences and market conditions.
According to the detailed breakdown, the central bank plans to raise N340 billion through 91-day bills, targeting short-term investors seeking quick returns. An additional N230 billion will be generated via 182-day bills, while the bulk of the funding, totaling N1.19 trillion, will come from 364-day bills, which offer longer-term investment opportunities.
The monthly distribution strategy reveals a graduated approach to the borrowing programme. The CBN aims to sell N540 billion worth of Treasury Bills in July, followed by N450 billion in August, before concluding with the largest monthly issuance of N770 billion in September.
Each month’s offerings will include various combinations of the three tenors, with the 364-day instruments carrying the heaviest weight in the overall funding strategy. This approach suggests the government’s preference for longer-term borrowing to provide more stability in its debt management operations.
The increased borrowing target comes as the Federal Government grapples with mounting expenditure pressures and the need to finance critical infrastructure projects and social programs outlined in the 2025 budget. The Treasury Bills programme represents a key component of the government’s domestic borrowing strategy, which aims to reduce reliance on external financing sources.
Market analysts will closely monitor investor appetite for these instruments, particularly given the current economic environment and prevailing interest rates. The success of the programme will largely depend on the CBN’s ability to offer competitive yields that attract both institutional and retail investors while managing the government’s borrowing costs effectively.
