Following the need to finance the 2022 budget deficit, the federal government through the Debt Management Office (DMO), in 2022, raised a whopping sum of N3.06 trillion from the bond market, the debt office monthly auction results has revealed.
Analysis of the auction results showed that total FGN bond borrowing in 2022 is 13 per cent higher than N2.71 trillion borrowed in 2021. The federal government’s 2022 budget stood at N17.32t trillion with a deficit of N7.35 trillion, which gives room for a new borrowing of N6.1trillion.
The monthly auction results revealed that DMO had offered to raise N2.48 trillion in the bond market but eventually raised N4.65 trillion, which is over 53.22 per cent oversubscription.
THISDAY gathered that the FGN bonds in the first half of 2022 recorded 37 per cent oversubscription to N3.02 trillion when N1.13 trillion was amount offered by DMO. The debt office eventually allocated N1.84trillion to investors despite mixed interest rates.
However, in the second half of 2022, the DMO allocated N1.23trillion to investors when it seeks to raise N1.35trillion. The total amount of subscriptions was N1.63trillion in the second half of 2022. Source: This Day
