The Nigerian government intends to borrow N2.5 trillion

Posted by

In its second FGN bond auction, the Nigerian Federal Government hopes to raise N2.5 trillion.
The Debt Management Office said in a circular released on Wednesday that the offerings were N1.25 trillion with a 10-year tenor and N1.25 trillion with a maturity date of February 2031.

The federal government’s domestic borrowing plan includes FGN savings bonds.

The Federal Government received over N7.06 trillion from the fixed-income market last year.

The newly adopted national budget for 2024, totaling N28.8 trillion, states that the federal government expects to borrow an additional N7.83 trillion.

Remember that as part of the external borrowing strategy for 2022–2024, President Bola Tinubu requested approval from the National Assembly in December of last year for around $8.69 billion and €100 million.

The most recent FG bonds have a face value of N1,000 and are redeemed in multiples of N1,000, with a minimum subscription requirement of N50,001,000.

FGN bonds typically pay interest on a semi-annual basis.

A two-year FGN Savings Bond with an annual interest rate of 11.033 percent, due January 17, 2026, and a three-year FGN Savings Bond with an interest rate of 12.033 percent, due January 17, 2027, were both sold by the FG in January.

It allocated N1.394 trillion for the three-year bond and N603.42 billion for the two-year tenor bond.

READ ALSO:  Police seize the alleged murderer of Ruth Bako, a student at UNIJOS

Leave a Reply