In a press release issued on Monday, the 11th of December, The Debt Management Office(DMO) of Nigeria announced that instead of the usual practice of rolling over Nigerian Treasury Bills at maturity, all 198.032 billion NTB which will mature in December this year will be repaid in full.
This is so that the Federal Government can implement the debt management strategy it previously announced.
This decision has sent yields on Treasury Bills down by more than half to circa 7%.
What does this move mean for the economy?
- This strategy will provide liquidity to the Nigerian financial system that will enable the private sector raise more funds by issuing securities in the domestic market and accessing credit from banks.
- An optimal national debt portfolio mix of 60% domestic and 40% external
- Private sector led economic growth
- The yields on NTBs will drop
- Nigerian investors will invest less in Treasury Bills due to the reduced interest rates receivable from them
How To Thrive Financially In The Wake Of This News/How Do Investors Proceed?
As an investor, if treasury bills made up a significant proportion of your portfolio, you may have to re-strategize.
More stable forms of investment might be the way to go in the current economic climate. For the coming fiscal year, you may want to diversify your portfolio, including Government bonds, and investing in the private sector.
Rosabon Treasury Note (RTN) is a great private sector option for you to consider. It’s a guaranteed returns investment plan with more flexible tenors than Treasury Bills.
RTN offers you competitive interest rates as high as 21.25%, as well as the option to receive your interest upfront in the manner of T-Bills.
Offered by non-bank financial institution, Rosabon Financial Services, RTN is a stable and secure way to invest. These are the benefits of placing funds with RTN:
- Returns on investments are guaranteed.
- Rosabon Financial Services is audited and regulated by CBN, hence, transparency is assured.
- Highly competitive interest rates
- Flexible Investment Tenor
- Personalized client service
Call +2348150880039 or WhatsApp +2348150880038 for enquiries. You can also email [email protected]
**all monies alluded to are in the Nigerian Naira.