The Federal Government will today raise about N360 billion in new borrowings as part of its regular debt issuance to finance budget deficit and augment national revenue.
It is the last bond auction by the outgoing government of President Muhammadu Buhari. The auction, which is based on the issuance calendar by the Debt Management Office (DMO), which oversees the government’s debt issuance and management, however, comes as the DMO at the weekend, expressed concerns that the country’s debt servicing is becoming unsustainable.
At the auction, the DMO will be offering four tenors of bonds to raise N90 billion on each tenor, totalling N360 billion. Market pundits expected the offers to be oversubscribed and government to allot more than initial targets, in line with the recent subscription and allotment patterns.
The bonds on offer, which are reopening of previous issuances, include the 10-year, 13.980 percent February 2028 bond; the 10-year, 12.50 percent April 2032 bond; the 20-year, 13 percent January 2042 bond, and the 30-year, and 12.98 percent, March 2050 bond. In an ironic twist, the DMO raised the alarm that Nigeria’s debt service is unsustainable.
