Nigeria Issues N8 Trillion in Treasury Bills - Minister of Finance

On Thursday, the Minister of Finance, Wale Edun, stated that the fiscal authority is complementing the efforts of the Central Bank to ensure the stability of the economy through the issuance of N8 trillion in government securities, specifically Treasury bills and Treasury certificates.

He made this announcement in an interview with BusinessDay during the International Monetary Fund (IMF)/World Bank spring meetings in Washington, D.C., USA, where other journalists were present.

Mr. Edun noted these securities' critical role in attracting foreign investment and outlined the cooperation between the fiscal authority and the Central Bank of Nigeria (CBN).

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"A large part of the securities that have been sold, the dollars come, and they get naira in exchange and use that naira to invest in securities," Edun explained. "Out of N8 trillion that has roughly been issued in securities by the CBN and Ministry of Finance, the majority has come from Treasury bills and Treasury certificates."

Edun emphasised how the CBN and the fiscal authorities' efforts to stabilise the economy are complementary. "It is showing the complementarity of the CBN, signalling that the fiscal authorities are rising to the challenge of providing enough merchandise for foreigners to bring their dollars and invest in naira securities," he stated.

Edun also highlighted other steps that have been taken to address economic issues, such as controlling inflation. "Another example of complementarity is that the CBN is tightening the money supply to drive down inflation," he noted. "The fiscal side to complement that effort includes a paying down of ways and means to alleviate the pressure from excess money in the system on a price level."

Edun underscored the two authorities' collaborative efforts to pursue common goals. "The two authorities [the CBN and fiscal authorities] are working hand in hand towards the common goal of stabilising the Nigerian economy, bringing down inflation, and stabilising forex, with the target of bringing down interest rates," he said.

In response to questions about the subject, Edun explained that there have not been any borrowing transactions involving the CBN and the federal government during the current administration. This statement confirms the government's commitment to economic responsibility and transparency.

Nigeria's economy is becoming more resilient in the face of global economic uncertainty, as demonstrated by the issuance of N8 trillion in treasury bills. As reported, Nigeria seeks to establish a favourable climate for investment and sustainable growth through coordinated efforts from its fiscal and monetary authorities.

Answering a question about taxes, Edun stated: "If you look at the 2024 budget, it has a significant 60–70% increase in overall government revenue projected because we need to focus more on mobilising domestic resources from taxes and other government revenue, particularly from oil revenue."

"In that regard, the best way to support government revenue in a non-inflationary way is through taxation—that is, without necessarily raising the tax rate but rather by increasing the administrative and collection efficiency rate," he said.