FG seeks N2.94trn loan, Nigerians offer N4.1trn in 11 months

Between January and November of 2022, the federal government borrowed a sum of N2.94 trillion from the domestic debt market to finance the 2022 budget deficit.

This represents an increase of 8.13 per cent over the N2.72trillion borrowed to finance the budget deficit between January and November of 2021.

The borrowings are contained in the Debt Management Office auction results published on its website obtained by Ripples Nigeria on Sunday.

The FGN bonds are debt securities of the Federal Government of Nigeria (FGN) issued by the DMO to local investors.

It has the obligation to pay the bondholder, mostly Nigerians, the principal and agreed interest as and when due.

The bond market is very attractive to investors and Pension Funds Administrators (PFAs) due to less volatility.

Breakdown Year-till-Date (YtD), FGN bond results revealed that DMO offered to raise N2.18 trillion in 11 months of 2022 and eventually witnessed an oversubscription of N4.12 trillion, out of which N2.94 trillion was the total allotted amount.

Read also:Buhari reappoints Patience Oniha as DMO chief

The latest FGN bond auction result for the month of November 2022 revealed that the DMO offered N225 billion for subscription to investors but raised N344.01billion through re-openings of the 14.55 per cent FGN APR 2029, 12.50 per cent FGN APR 2032 and 16.25 per cent 2037 FGN bonds. The DMO finally allotted N269.15billion to investors in November.

The agency had offered N225 billion for subscription to investors in October but raised N107.88 billion through re-openings of the 14.55 per cent FGN APR 2029, 12.50 per cent FGN APR 2032 and 16.25 per cent 2037 FGN bonds.

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