Nigeria Sells N88b Bonds to Finance 2018 Budget

By Dipo Olowookere

The Nigerian government on Wednesday raised the sum of N88.08 billion from the local bond market to fund part of the 2018 budget, which was signed into law in June this year.

The bond sale was carried out by the Debt Management Office (DMO) on behalf of federal government.

Business Post reports that the debt office had offered the FGN bonds worth N115 billion to investors, and received subscriptions worth N143.48 billion. However, the DMO only allotted only N88.08 billion.

Data from the debt office revealed that the bonds were auctioned in three tenors of five, seven and 10 years.

Details of the exercise showed that investors showed a strong preference for the 10-year re-opening bond with a total subscription of N102.08 billion compared with the N45 billion that was offered.

However, N55.29 billion was allotted.

The Federal Government bonds at the auction were allotted at 12.75 per cent for the five year, 13.53 percent for the seven year and 13.98 percent for the 10-year bond.

The DMO said that out of the N35 billion offered for the five year bond, subscriptions to the value of N16.50 billion was received, while only N12.65 billion was allotted.

It also said that for the seven year paper, N24.90 billion subscriptions were received for the N35 billion on offer, however, N20.14 billion was allotted.

Of the three, only the 10 year paper had allotments beyond what was originally offered.