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The NTB auction this week will shed light on the DMO’s borrowing strategy for the Quarter and confirm its alignment with CBN’s tightening posture or otherwise. The Bond issuance calendar will also help give a sense of the interest rate direction for the rest of the year.
In recent times, the administration of the Federation Account Allocation Committee (FAAC) has highlighted the need for more collaboration between fiscal and monetary policies. It may be necessary for Nigeria to consider the establishment of a Treasury Single Account (TSA) mechanism independent of the banking system for the exclusive use and control of the state governments.
