TREASURY CERTIFICATE ACT

An Act establishes the legal framework for the Federal Government to issue Treasury Certificates as short-term borrowing instruments. It targets the Federal Government as issuer, the Central Bank of Nigeria as agent, and banks as investors. This provides flexible tools for government cash management.

What Is This Policy?

An Act providing the legal framework for the Federal Government to issue Treasury Certificates as short-term government borrowing instruments, supplementing Treasury Bills as part of government cash management. Constitution of the Federal Republic of Nigeria 1999 (Section 80 on borrowing); Finance (Control and Management) Act; Central Bank of Nigeria Act; Debt Management Office Act; Fiscal Responsibility Act 2007

Federal Government as issuer CBN as the issuing and redeeming agent Banks and institutional investors Debt Management Office

Who Does It Target?

The Federal Government of Nigeria as the issuer of treasury certificates. The Central Bank of Nigeria managing short-term government borrowing. Banks and financial institutions investing in government securities. The Debt Management Office and the Ministry of Finance.

What Does It Aim to Achieve?

Provide the government with a flexible short-term borrowing instrument for cash management needs, supplementing Treasury Bills.

Key Features

Certificate Issuance: Government issues Treasury Certificates as short-term debt instruments. Negotiability: Treasury Certificates are negotiable instruments that can be transferred between holders. Redemption: Certificates are redeemed at face value on maturity. CBN Role: CBN manages issuance and redemption as government's fiscal agent.

Current Status

Rollout Stage: Active Coverage: Government cash management Beneficiaries: Government liquidity management; investors Funding: Certificate proceeds

How to Access

Purchase through CBN or authorised dealers Certificates may be held to maturity or sold in secondary market Application method: Purchase through CBN or authorised institutions.

Important Terms

Treasury Certificates are sovereign instruments — minimal credit risk Different maturity periods available for investor liquidity preferences Certificate interest is typically exempt from certain taxes

Official Resources

Website: https://www.dmo.gov.ng Contact: Debt Management Office (DMO) / CBN

Legal Framework

Constitution of the Federal Republic of Nigeria 1999 (Section 80 on borrowing); Finance (Control and Management) Act; Central Bank of Nigeria Act; Debt Management Office Act; Fiscal Responsibility Act 2007