Nigeria borrows N1.7 trln via bond in 9-month, spends N600 bln on debt service
The Debt Management Office (DMO) has so far raised N1.72 trillion through domestic debt issuance at its monthly auction in a bid to plug Nigeria’s budget deficit in this year’s fiscal policy.
The debt office has also deployed about N600 billion of the amount raised to service previous bonds issued through the domestic debt auction.
The amount was repaid to bondholders as the debt matured and due for repayment in the course of the year, data released by FSDH on Monday showed.
The FSDH stated that Nigeria could see some savings of up to N2.68 billion on total debt service in the revised 2020 budget.
This, the company hinged on the declining yields on both bonds and Nigerian treasury bills at the monthly and bi-monthly auctions.
“On nine months’ performance, we believe that the DMO is placed itself well to meet its funding target of ₦1.59 trillion and could build an additional cushion,” FSDH wrote in a note to clients.
Nigeria has proposed to raised N1.59 trillion from the domestic debt market this year after converting the source for raising the ₦850 billion from External to Domestic.