FG to borrow N2.5tn through bond – DMO

The Federal Government of Nigeria intends to raise N2.5 trillion through its second FGN bond sale.

In a circular issued on Wednesday, the Debt Management Office claimed that the sales included N1.25 trillion with a maturity date of February 2031 and N1.25 trillion with a 10-year term.

FGN savings bonds are part of the federal government’s domestic borrowing program.

Last year, the Federal Government raised about N7.06tn from the fixed-income market.

According to the recently signed N28.8 trillion 2024 national budget, the Federal Government has projected its new borrowings to hit N7.83 trillion.

Recall that in December last year, President Bola Tinubu had sought approval from the National Assembly for about $8.69bn and €100m as part of the external borrowing plan for 2022 to 2024.

The latest FG bonds have a face value of N1,000, with a minimum subscription requirement of N50,001,000 and subsequent increments in multiples of N1,000.

Interest payments on FGN bonds are usually semi-annual.

In January, the FG had offered a two-year FGN Savings bond due January 17, 2026, at 11.033 per cent per annum and another three-year FGN Savings Bond due January 17, 2027, at 12.033 per cent per annum.

It allotted N603.42bn for the two-year tenor bond and N1.394tn for the three-year bond