Starting November 29, individuals and small firms will no longer be granted the sales of treasury bills by the Deposit Money Banks and other financial institutions.
The Central Bank of Nigeria announced in a recent directive that only big corporate organizations would be allowed to do treasury bills investments.
According to a Punch correspondent, messages communicating the new directive have been sent to customers.
“Operators are trying to see if the November 29 deadline given for the implementation by the CBN could be extended, so as to create enough awareness. But there is no move for the reversal of the directive.” A bank official said.
An operator from one of the DMB’s said the unavailability of treasury bills will pose an upward trajectory in the savings deposits of the banks.
According to a source from CBN, the new directive will cease the mop-up of funds from the system through the treasury bills.
He said, “Many people with huge cash prefer to keep their funds idle in treasury bills instead of investing the funds. Some people collect huge severance package, have huge funds but they have refused to invest the money.
“We want these funds to be useful in the economy so that they will be available in the banks and can be invested to create more jobs in the country.”
Also, the CBN to this effect has increased Loan to Deposit Ratio of the banks from 60 percent to 65 percent.