Reflecting the rising cost of domestic debt amid continued monetary policy tightening by Nigeria’s central bank , yields on 12-month Treasury bills in Nigeria surged to the highest level in 13 months.
The Debt Management Office (DMO) sold a total of NGN283bn (US$661m) of the 364-day federal government bills at a discount rate of 8.5 percent — the highest since 14 July last year. The bills were sold at an auction by the DMO on Wednesday that cleared on Thursday.
While real interest rates remain negative, the rising cost of domestic debt will likely place further pressure on public finances after debt service costs surpassed revenues in the first four months of this year.
