Amidst the lingering budget debacle between the executive and the legislative arms of government, Federal Government has sustained its local borrowing plans with additional N105 billion slated to be raised from the bonds market next Wednesday.
The new debt issue will bring the total borrowing of government through this window to N586 billion.
The breakdown shows that government had raised about N300.8 billion in the first quarter of this year, while another N180.2 billion was raised in April.
Details of the latest debt issue from the Debt Management Office, DMO, indicate that government will sell N50 billion of a bond maturing in 2036, N40 billion of debt maturing in 2026 and N15 billion of debt maturing in 2020, using the Dutch auction system.
All the bonds on offer are re-opening of previous issues and the results of the auction are expected to be released a day after the auction.
In all, government plans to borrow about N900 billion locally this year, to finance part of the N2.2 trillion deficit in its 2016 budget.
The balance of N1.3 trillion would be raised from external bilateral and multilateral borrowings, as well as other unspecified international funding plans.
Federal Government’s domestic debt stock stood at N8.8 trillion as at 2015, cutting across three instruments, with Federal Government bond dominating at N5.81 trillion or 65.7 percent of the total debt, while Nigerian Treasury Bill accounted for N2.8 trillion or 31.4 percent and Treasury Bill was N255.99 billion or 2.9 percent.
DMO was established in the year 2000 to centrally coordinate the management of Nigeria’s debt, which was hitherto being done by a myriad of establishments in an uncoordinated fashion
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