FG borrowed N3.2trn through treasury bills in 2020

The Federal Government borrowed N3.2 trillion from the investing public through treasury bills, TBs, in 2020, while it  paid N253 billion as interest on TB borrowings from January to September 2020.

This represents marginal increase of 1.9 percent, year-on-year, y/y,  when compared with the N3.13 trillion borrowed through the instrument in 2019.

Furthermore,  the amount borrowed in 2020 represents 84 percent of the N3.71 trillion treasury bills borrowing that matured and were repaid in 2020.

Vanguard analysis of TBs issued by the Central Bank of Nigeria (CBN) on behalf of the federal government (FG) showed that the amount of matured TBs repaid rose by 19 percent, y/y,  to N3.71 trillion in 2020 from N3.12 trillion in 2019.

Further analysis showed that the FG borrowed N922.3 billion  the first quarter (Q1’2020) representing 29 percent, quarter-on-quarter (q/q) increase when compared with the N716.26 billion borrowed in the fourth quarter of 2019

FG, however, borrowed less in  the second quarter (Q2’2020) as the amount of TBs sold dropped by 36 percent, q/q, to N593.7 billion.

But the volume spiked in Q3’2020, as the TBs sold on behalf of the FG shot up by  68 percent, q/q, to N1 trillion, before falling by 39 percent, q/q, to N614 billion in Q4’2020.


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