Nigeria will borrow between N450 billion to N540 billion from the domestic debt market in the third quarter of this year, according to the Bonds issuance callendar released by the Debt Management Office (DMO) on Wednesday.
The debt office will offer bonds with 10-,20- and 30-year tenor on the domestic market in between July and September to fund part of this year’s budget deficits.
The debt office will raise between N150-180 billion in July, August and September across the three tenor paper at its monthly auction.
Finance and budget minister, Zainab Ahmed had on Wednesday announced plans by the country to borrow N4.89 trillion from both domestic and external sources to fund the proposed 2022 budget.
Ahmed, who spoke at yesterday’s cabinet meeeting said that the federal government’s projected budget deficit for 2022 is N5.62 trillion, up from N5.60 trillion in 2021.
Nigeria issue bonds at its monthly debt auction as part of its borrowing plan finance budget deficits.
Debt office had last month revealed that Nigeria spent a total of N612.71 billion to service its domestic debt in the first three months of 2021.
As of March 2021, the federal government owed a total of N16.51 trillion in domestic debt.
Since the inception of the Mohammadu Buhari administration, the country debt profile has beenmounting as the government said it was borrowing to fund infrstructure development in the face of dwidling revenue.