Nigeria’s Debt To Rise As FG Targets N720bn From Bond Issuance In Q3

The federal government is targeting to raise between N630bn to N720bn from the bond market in the first quarter of 2022, a move that will increase the country’s debt stock.

The Debt Management Office disclosed this on Wednesday in the FGN bond issuance calendar for the third quarterly of 2022.

The first bond for the quarter will be offered July 18, 2022 in three tranches of 13.35 per cent March 2025, 12.50 per cent FGN APR 2032 and 13.00 per cent FGN January 2042.

For the month, the government hopes to raise between N210bn and N240bn.

Another offer will be made August 15, 2022 in three tranches of 13.53 per cent FGN March 2025, 12.50 per cent FGN April 2032 and 13.00 per cent FGN January 2042 with original maturity of 10 years, 10 years and 20 years respectively.

The target is between N210bn and N240bn depending on the review by the country’s debt manager.

On September 19, the DMO said the last bond issuance which targets N210bn or N240bn will be auctioned, subject to a final review.

According to DMO, the bonds will be offered in three tranches of 13.53 per cent FGN March 2025, 12.50 per cent FGN April 2032 and 13.00 per cent FGN January 2042 with original maturity of 10 years, 10 years and 20 years respectively.

Nigeria’s total debt stock according to the DMO is $100bn or N41.6tn, but it is set to rise due to the bond issuance which will take place over the next three months.

This will raise the country’s debt to over N42.3tn ($101.78bn) and even more when other debts incurred by the government are added.

As of March, official data reveals that FGN Bond constitutes 70 per cent or N14.24tn of Nigeria’s domestic debt stock by instrument which is N20.14tn.

FGN Bond also accounts for 34.2 per cent of Nigeria’s N41.6trn debt stock.