Don’t worry I am as gobsmacked as you are. Anyway, the CBN Gov was quoted as follows;
“Clearly from where we are, we have a maximum of 10 years from 2014. We think it will be able to pay down before then. But on the conservative side, we have about 10 years.
Impact on Liquidity
“We are not creating any new money. At the point it pays off over N800 billion bonds, it will simply hand over these treasury bills to the banks, take these bonds and cancel them all.
“All that is happening is that the balance sheet of AMCON is shrinking and that reduces its liabilities and assets holdings. We are not pumping cash into the system; we are not creating new securities and we are not going to have more liquidity. What may happen, which is not likely, is the possibility of tightened liquidity. But because liquidity ratio is about 70 per cent and most of those AMCON bonds are not being used for repos, even though that can be used.”
“there might be an impact in the total money supply because of the reduction in credit to the private sector, but we are looking at all the implications and when it is time to pay, the central bank will decide how much of it should be in form of securities, should we issue some special securities to mop up the money and if we are going to sterlise the money for a year or six months. “This will all fit into our monetary policy stance.”