FG Releases Calendar For Next 3 Months Borrowing as Report Shows Nigeria Debt Profile is Over N50tn, Not N39tn

FG Releases Calendar For Next 3 Months Borrowing as Report Shows Nigeria Debt Profile is Over N50tn, Not N39tn

  • The federal government through the DMO has released details of its borrowing plans for the next three months
  • The money will be borrowed in the form of savings bonds, with a full maturity date of January 2042
  • Nigeria's debt profile has risen to N39 trillion, according to the Debt Management Office, but a new report from an economic group suggests it might be beyond N50 trillion

The Debt Management Office (DMO) has released a calendar for the issuance of bonds for the second quarter of 2022.

A bond is a fixed income instrument (loan) made by an investor to a borrower — usually corporate or government.

According to DMO's calendar, on April 25, the government will give citizens a chance to subscribe to its offer of N70 billion to N80 billion, with a tenor of seven years and 20 years at an interest rate of 13.53 per cent.

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Federal Government, Debt Management Office, Calender, Bond
Calendar for Nigeria's borrowing plan in Q2, 2022 Credit: DMO
Source: Facebook

The next offer will be on May 16, which will be two years 10 months, with an interest rate of 13.53 per cent.

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The offer will be reopened in April 2032 and January 2042, with the original tenor of 9 years, 10 months and 19 years, 7 months.

The Federal Government again will ask citizens for a subscription for its bonds worth around N70 to N80 billion on June 20 this time it will mature within two years, 9 months period.

The DMO, however, explained that the calendar is provisional and subject to change at short notice.

Nigeria's debt could be more than N50trn

Meanwhile, the Centre for the Promotion of Private Enterprise(CPPE) has revealed that Nigeria’s debt stock could be in excess of over N50 trillion compared to the reported N39.56tn by the Debt Management Office.

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The Punch reports that the group argued that DMO recently released debt stock does not include Federal Government borrowings from the CBN and the stock of AMCON debt.

Odinkalu: Nigeria's public debt profile has tripled in 7 years

In another news, rights activist, Chidi Odinkalu,has said Nigeria’s debt profile has increased three times in the last seven years since Muhammadu Buhari mounted the saddle as Nigeria’s president.

Odinkalu said this in a tweet but did not expatiate as he only provided an undated chat from the Nigeria Bureau of Statistics (NBS).

Odinkalu may not be an economist but available data from Debt Management Office (DMO) says Nigeria’s debt profile has soared to about N35.65 trillion recently because of increased borrowing by Buhari's government.

Source: Legit.ng

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