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Nigeria To Borrow 145 Bln Naira From Domestic Market To Fund 2019 Budget

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Nigeria plans to borrow 145 billion naira from the domestic market on Wednesday, July 24, to fund 20119 budget gap, a notice from the Debt Management Office (DMO) has shown.
Africa’s biggest economy plans to auction 55 billion naira worth of 30-year local bond to investors at an auction next week, 50 billion naira in 10-year paper and 40 billion naira of the 5-year debt.
Nigeria’s total domestic debt stood at 13.11 trillion naira by the end of the first quarter of this year, according to the latest data from the DMO.
Local debt constituted 9.72 trillion naira or 74 percent of the total domestic debt of the government, while the treasury bill component stood at 2.65 trillion naira or 20 percent of the country’s domestic debt.

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The OPEC top member conducts a monthly auction to sell domestic debt to investors as part of measures to raise cash to fund budget deficit, help manage liquidity in the banking system and set a benchmark for corporate bond issuance for the private sector.
The secondary bond market was bullish on Wednesday with yields falling by as much as 5 basis points, while demand for tenor bond remain high, traders said.
Allotments at the June auction were made to successful bidders by the debt office at 14.3 percent for the 5-year paper, 14.5 percent for the 10-year and 14.68 percent for the 30-year bonds.
The Nigerian government bonds are backed by the full faith and credit of the Federal Government of Nigeria and are charged upon the general assets of the country.

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