TREASURY BILLS ACT
Act · Trade
An Act enables the Federal Government to issue Treasury Bills for managing liquidity and monetary policy. It targets government agencies and investors. This supports effective cash flow management and financial stability.
TREASURY BILLS ACT
What Is This Policy?
An Act providing the legal basis for the Federal Government to issue Treasury Bills as short-term money market instruments for managing government liquidity and implementing monetary policy.
Who Does It Target?
Federal Government as issuer CBN as issuing agent and primary dealer Banks and institutional investors purchasing T-Bills The Debt Management Office
What Does It Aim to Achieve?
Enable the Federal Government and CBN to issue short-term treasury bills to manage government cash flow, provide the market with a risk-free liquid instrument, and implement open market operations.
Key Features
T-Bill Issuance: Federal Government issues T-Bills through CBN at weekly auctions with maturities of 91, 182, and 364 days. Discount Instrument: T-Bills are issued at a discount to face value and redeemed at par on maturity. Monetary Policy Tool: CBN uses T-Bill auctions as a key tool for implementing monetary policy and managing system liquidity. Risk-Free Benchmark: T-Bills serve as the benchmark risk-free rate for Nigerian financial markets.
Current Status
Rollout Stage: Active — weekly T-Bill auctions conducted by CBN Coverage: Nigerian money market Beneficiaries: Government liquidity management; money market investors Funding: T-Bill proceeds
How to Access
Institutional investors bid at weekly CBN T-Bill auctions Retail investors may purchase T-Bills through stockbrokers or some banks T-Bills are held electronically in the CSCS Application method: Purchase T-Bills through CBN primary dealers or retail channels.
Important Terms
T-Bills are the most liquid short-term investment in Nigeria CBN auction results determine the benchmark short-term interest rate T-Bills held to maturity are redeemed at face value — the discount is the return
Official Resources
Website: https://www.cbn.gov.ng Contact: Central Bank of Nigeria (CBN) / DMO
Legal Framework
Enacted under Section 4 of the 1999 Constitution. Operates alongside the Debt Management Office Establishment Act 2003, the Fiscal Responsibility Act 2007, the Finance (Control and Management) Act 1958, and the Central Bank of Nigeria Act 2007 governing treasury operations and short-term government borrowing.