Nigeria to issue 205 bln naira in treasury bills next week

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Nigeria plans to issue 204.95 billion naira ($651.7 mln) in treasury bills at an auction on July 19, the central bank said.

The bank aims to raise 36.78 billion naira in three-month bills, 39.17 billion naira in six-month paper and 129 billion naira in one-year bills.

Nigeria’s central bank issues treasury bills twice a month to help the government to finance its budget deficit, curb money supply growth and provide an avenue for lenders to manage liquidity.

Africa’s biggest economy expects its budget deficit to hit 2.36 trillion naira this year as it tries to spend its way out of recession, with more than half the deficit financed through local borrowing.

Finance Minister Kemi Adeosun on Tuesday said that Nigeria should not borrow more to fund its budget and instead raise the money it needs by other means.

(Reporting by Oludare Mayowa; Editing by Chijioke Ohuocha and David Goodman)