DMO secures additional N100bn debt for 2018 budget

By Ruth Olurounbi

Nigeria has secured more than half of the total sum of N849 billion it needs from the domestic market to finance the 2018 budget, thanks to the oversubscribed N90 billion bond offered.

The Debt Management Office (DMO) disclosed that it received more than N100 billion in subscriptions for the FGN Bond Auction for August 2018 offered in three tenors – five years, seven years and 10 years.

“Allotments were made to successful bidders at 14.39% for the 5-year, 14.60% for the 7-year and 14.69% for the 10-year Bond, which are consistent with the rates in the secondary market for the bonds offered at the auction.

“A total of N100.09 billion was allotted to competitive and non-competitive bidders at the auction and the proceeds will provide additional financing for the implementation of the 2018 Appropriation Act,” the debt agency said in a written statement.

The N100 billion totals up the sum of N510 billion out of the N849 billion Nigeria needed to finance the 2018 budget.

Nigeria seeks to finance the N1.8 trillion deficit in the N9.12 trillion budget domestic and foreign debts, as well as accruals from envisaged sales of national assets.