Nigeria Pays N124.5 Billion Debt Used to Fund 2017 Budget As Revenue Declines

Nigeria Pays N124.5 Billion Debt Used to Fund 2017 Budget As Revenue Declines

  • The Nigerian government has redeemed its $300 million diaspora bond which matured on June 27, 2022
  • The Debt Management Office (DMO) announced via its website that the bond was used in the financing of the 2017 Appropriation Act
  • According to DMO, the redemption of the debt is a demonstration of Nigeria's reliability in meeting its obligations towards to international investors

As Nigeria continues to witness one of the worst revenue declines in history, it has redeemed a $300 million diaspora bond which reached maturity on June 27,2022, the Debt Management Office (DMO) said.

In a release on its website, the DMO stated that the bond was issued on June 27, 2022 for a five-year tenor in the International Capital Market.

Nigeria, Diaspora Bond, DMO
President Muhammadu Buhari and Vice President Yemi Osinbajo Credit: State House
Source: Facebook

Nigerian government, credit-worthy

The Punch quoted the DMO as saying that the bond was partially used to fund the deficit in the 2017 Appropriation Act.

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The DMO assured investors of the country’s commitment to honouring its obligations, asking Nigerian Diaspora to invest more in Nigeria.

According to the statement, the bond was issued on 27, 2017 for a term of five years in the International Capital Market and earrings from it were used to partially fund the 2017 Appropriation Act.

A pledge to international investors

Also, the DMO said, the aim of raising the funds for the government was a plan to avail the Diaspora Nigerians the chance to invest in their home country.

The DMO further stated that the confidence of the investing public has been buoyed with the redemption of the $500 million Eurobond in January 2021 and now, the $300 million Diaspora Bond, the Nigerian government has shored up investors’ confidence and trust in the ability of the government to honour its obligations to the investing public.

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Nigeria spends N896.56 Billion on debt servicing in 3 months

Recall that reported that in three months, the Nigerian government has spent a whopping N896.56 billion on debt servicing, according to the Debt Management Office (DMO).

This has led the country to spend N3.83 trillion on debt repayments in 15 months, a DMO data says.

The Punch reports a total of N2.93 trillion was spent on servicing debt in 2021, meaning a 109 per cent increase in comparison to 2022.


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