The Debt Management Office, on Thursday, revealed plans to issue the country’s first 30-year naira bond in a move to attract long-term investors and extend the maturity profile of its debt.
As reported by Reuters, the country, which has been racking up debt to boost the sluggish economy and fund infrastructure projects, recorded a total public debt of N24.39tn ($79.44bn) at the end of 2018, up from N21.7tn in 2017.
Though the costs of servicing debts have increased significantly, the Minister of Finance, Mrs Zainab Ahmed, said last week that the government had strategies to finance the 2019 budget of N8.83tn and would consider cheap concessionary loans to reduce costs.
The DMO, in a statement on Thursday, said the new 30-year Federal Government bond would be attractive to long-term investors and would help in “developing the domestic capital market and reducing the re-financing risk” of the government.
It said it also expected the government to approve a total borrowing of N1.649tn in 2019.
Nigeria will keep borrowing until refineries issue is resolved.
Recall that 2017 budget was N7.4 Trillion and FG spent N5.4 Trillion to import refined fuel in a country that has the best crude oil in the world.