The Central Bank of Nigeria (CBN) has incurred a staggering N1.55 trillion in interest payments from Treasury Bills (T-Bills) auctions conducted during the first half of 2024.
This figure marks a sharp 654.7% increase compared to the N205.63 billion recorded in the same period last year.
The rise in interest costs is attributed to the CBN’s aggressive monetary policy, aimed at controlling inflation, with stop rates for 364-day bills reaching as high as 21.49%.
The auction data shows that the CBN sold T-Bills worth N8.4 trillion across various tenors, with a total subscription of N28.15 trillion, indicating an over-subscription of about 662.9%.
The high interest rates have raised concerns about the sustainability of government borrowing, with potential implications for critical sectors like infrastructure and healthcare.
Moody’s Ratings and PricewaterhouseCoopers have both warned that rising interest obligations could severely impact Nigeria’s debt profile and economic stability.
