BREAKING NEWS: FG successfully borrowed over N300bn from citizens using 4 new instruments, full repayment date in 30 years

The Federal government now has extra cash that will help fund the 2023 budget deficit and other obligations.

Debt Management Office (DMO) has disclosed that it received a total subscription of N312.56 billion from local investors on Monday, August 14, 2023 following the August FGN Bond Auction.

Bonds are typically long-term investments ranging from 3 to 50 years issued by the DMO on behalf of the Federal Government. It is is part of the instrument used by the government to borrow from citizens and also mop up cash in the hands of Nigerians….CONTINUE READING

PAY ATTENTION:  Lagos Proposes Law For Compulsory Compliance To Building Materials Quality

Details of FGN bond

DMO reports that during the auction, four instruments were offered to investors at N90 billion each and they are 4.55 percent FGN APR 2029, 14.70 percent FGN JUN 2033, 15.45 percent FGN JUN 2038 and 15.70 percent FGN JUN 2053) for.

DMO said: “Investors’ appetite for the 15.70 percent FGN JUN 2053 (30-year Bond) remained strong, with a bid-to-cover ratio of 2.71 times.”

PAY ATTENTION:  EXCLUSIVE: McBrown’s husband’s affair with Maame Serwaa Prikels grows very tight – An estranged friend speaks

Full repayment in 30 years

A total of N227.76 billion was allotted to successful bidders for the four instruments was which were made at 13.85 percent for the 14.55 percent FGN APR 2029, 15.00 percent for the 14.70 percent FGN JUN 2033, 15.20 percent for the 15.45 percent FGN JUN 2038 and 15.85 percent for the 15.70 percent FGN JUN 2053.

Nigeria’s debt stock hits N82 trillion amid CBN’s naira devaluation

Meanwhile, in another report, reported that Nigeria’s public debt has risen to N82 trillion from N77 trillion before the Central Bank of Nigeria (CBN) exchange rate unification, announced on Wednesday, June 14, 2023.

PAY ATTENTION:  JUST IN: Naira Marley is the subject of a court-issued production order over an Internet fraud case.

According to a press release by the CBN, all exchange rate windows are collapsed into the Importers and Exporters (I&E) window, showing a merger of the multiple exchange rates….CONTINUE READING

The unification has seen the naira fall to N664 per dollar and has attracted severe consequences for the nation’s economy, including a spike in public debt.