Abuja shopping for N720b new bond loan this year

Nigeria drowning in more debt

Abuja shopping for new loan to add to N45.25tr debt already amassed

By Jeph Ajobaju, Chief Copy Editor

Abuja plans to obtain additional N720 billion loan this year, as disclosed by the Debt Management Office (DMO) in its Federal Government of Nigeria (FGN) Bonds Issuance Calendar for the fourth quarter of 2022 (Q4 2022).

The calendar listed the timeline as follows:

17 October 2022

The DMO will re-open a 14.55 per cent, April 2029 bond valued at between N70 billion and N80 billion, with six years, six months term-to-maturity and an original tenor of 10 years.

It will re-open a 12.50 per cent, April 2032 FGN bond valued at between N70 billion to N80 billion, with a term-to-maturity of nine years, six months, and original tenor of 10 years.

It will re-open a 16.24. 2037 FGN bond, valued at between N70 billion and N80 billion, with term-to-maturity of 14 years, six months, and original tenor of 20 years.

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14 November 2022

The DMO will, again, re-open the 14.55 per cent, April 2029 FGN bond valued at between N70 billion and N80 billion, with term-to-maturity of six years, five months, according to reporting by Vanguard.

It will re-open the 12.50 per cent, April 2032 FGN bond valued at between N70 billion and N80 billion, with term-to-maturity of nine years, five months.

It will re-open the 16.24, April 2037 FGN bond valued at between N70 billion and N80 billion, with term-to-maturity of 14 years, five months.

12 December 2022

The DMO will re-open the 14.55 per cent FGN bond valued at between N70 billion and N80 billion, now with six years, four months term-to-maturity.

It will re-open the 12.50, April 2032 FGN bond, valued at between N70 billion and N80 billion, with term-to-maturity of nine years, four months.

It will re-open the 16.24 per cent FGN bond valued at between N70 billion and N80 billion, with term-to-maturity of 14 years, four months.

Nigeria’s debt shoots up to N45.25tr

Nigeria’s debt rose by about N4 trillion between April and August to reach N45.25 trillion, gleaned from documents produced by the Central Bank of Nigeria (CBN) the Debt Management Office (DMO).

Monthly reports of the CBN and DMO show the federal government raised about N3.34 trillion through its regular issuance of domestic debt instruments in the four months.

Documents Vanguard reviewed to arrive at the figures also include those from two top investment and finance organisations dealing in government debts – Arthur Steven Asset Management and Vetiva Capital Management Limited.

The DMO already disclosed national debt rose to N41.6 trillion in the first quarter of the year ended March (Q1 2022).

Abuja raised N1.116 trillion through bond issuance between April and August, as well as N1.999 trillion through Nigerian Treasury Bills (NTBs), and mopped up N220.01 billion through Open Market Operation (OMO).

The DMO said it used CBN official exchange rate of N415.75 per dollar as of Q1 2022 to convert the rate for external debt in the quarter. The official rate remained at N423.48 per dollar by 31 August.

Total debt is based on the increase in external debt and naira depreciation, from N16.62 trillion in Q1 2022 to N16.93 trillion in August.

Jeph Ajobaju:
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