Index to Nigerian Newspapers

BUDGET FINANCING: N2.5TRN TARGETED FROM SALES OF SAVINGS BONDS

The Nigerian Federal Government plans to raise N2.5 trillion in its second FGN bonds auction. In a circular issued on Wednesday, the Debt Management Office stated that the offerings consisted of N1.25 trillion with a maturity date of February 2031 and N1.25tn with a 10-year tenor. FGN savings bonds are part of the federal government's domestic borrowing plan. 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 N100m 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.

Isa Abdulwahab | Government bonds — Nigeria | New Telegraph | Thursday, February 15, 2024