The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to stop the sale of treasury bills to individuals and small firms with effect from November 29.
Concise News understands that the apex bank directed only big corporate organisations to do treasury bills investments. It also learned that banks were already notifying their customers of the new directive.
Reports said the existing treasury bills investments would be allowed to continue till the end of their maturity dates.
An operator said the inaccessibility of treasury bills might lead to an increase in savings deposits of the banks, attracting interest rates below what the treasury bills offered.
A source from the CBN said the move was to stop the mop-up of funds from the system through the treasury bills.
He noted that the CBN had increased the Loan to Deposit Ratio of the banks from 60 percent to 65 percent.