Nigeria Economic Update, Issue 28

The Central Bank of Nigeria’s (CBN) Nigerian Treasury Bills (NTB) issuance calendar for the third quarter of 2025 revealed that the Federal Government plans to raise ₦1.76 billion through NTB auctions in response to a total of ₦1.98 billion in maturing obligations over the period. This planned borrowing is a step towards the ongoing efforts to manage liquidity and refinance short-term debt amid fiscal pressures. The issuance programme is spread across the 91-day, 182-day, and 364-day tenures, with the 364-day instrument accounting for the bulk of the offer at ₦1.19 billion, signalling a preference for locking in longer-term funds at prevailing interest rates. The 91-day and 182-day instruments are expected to raise ₦340 million and ₦230 million, respectively. According to the auction calendar, active issuances are concentrated in July and August, with relatively fewer maturities and offerings scheduled for September. This borrowing plan continues a trend of leveraging the domestic money market to manage the government’s short-term funding needs while maintaining investor confidence through regular auctions. However, while it provides temporary fiscal relief, it also highlights structural fiscal challenges, including the rising cost of debt servicing and limited revenue growth. To improve long-term fiscal sustainability, there is a growing need to complement these short-term borrowing efforts with broader public finance reforms. Key areas include enhancing non-oil revenue mobilisation, rationalising recurrent expenditure, and deepening the domestic debt market to include longer-term instruments that reduce refinancing risks and promote macroeconomic stability. 

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