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Debt to rise as Nigerian govt targets N720bn from bonds in Q3

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The Federal Government plans to raise N720 billion from the bond market in the third quarter of this year, a move that is expected to increase the country’s debt profile.

The Debt Management Office (DMO) revealed this in a document seen by Ripples Nigeria on Wednesday.

According to the DMO, the federal government will raise between N630 billion and N720 billion from bonds in nine different offerings between July 18 to September 19 with the bonds tenor ranging from 10 years and 20 years.

The federal government borrowed N2.2 trillion from the bond market in the first quarter of this year as it continues to seek cash outside its revenue generation sources.

Read also:Nigerian govt spends N896.7bn repaying China debts, others in three months —DMO

President Muhammadu Buhari-led administration had declared in January that it would borrow N2.57 trillion from local investors to finance the 2022 budget.

In the document, the agency added that the government would raise between N70 billion to N80 billion in three tranches on July 18, August 15, and September 19.

The development will increase Nigeria’s debt stock to $100.06 billion.

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