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Nigeria to borrow N720 bln via bonds on domestic market in 2nd quarter

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By Samuel Bankole

Nigeria plans to borrow up to N720 billion in the second quarter of this year from the domestic debt market, according to the Debt Management Office (DMO) latest auction calendar.

The DMO in its “FGN Bonds Issuance Calendar For The Second Quarter, 2022,″ released on Tuesday stated that it will sell around N70 to N80 billion worth of 10-year new bond issue in April.

The debt office also intends to raise between N70 billion and N80 billion each in 7-year and 20-year bonds on April 25.

The two tenure papers are reopening of a previously issued debt with maturity of 2 Years, 10 Months for the 7-year paper and 19 Years, 9 Months for the 20-year paper.

In May, the DMO has proposed to raise N70 billion to N80 billion in 7-year. 10-year and 20-year reopening bonds with shorter maturity.

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At the June auction, the debt office has also proposed to issue between N70 billion and N80 billion worth of bonds with original maturities of 7-year, 10-year and 20-year each.

Nigeria issue bonds on monthly basis to raise cash to back budget deficits, help manage banking sector liquidity and provide benchmark interest rate for the local debt market.

The country has projected to spend about N7 trillion deficit this year while the government plans to raise half of the money from the domestic debt market with the balance from external sources, including granted and multilateral loans.

Nigeria’s total public debt stock rose to N39.66 trillion at the end of December 2021, compared with N32.91 trillion a year earlier, the debt office said in March.

A breakdown of the debt figure showed that the country borrowed a total of N23.70 trillion from the domestic debt market, while external borrowing stood at  N15.85 trillion or $38.39 billion.

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