DMO releases FG’s N720 billion borrowing plan for second quarter of 2022
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DMO releases FG’s N720 billion borrowing plan for second quarter of 2022

Alpha101 April 6, 2022

The Debt Management Office (DMO) has released a schedule of the Federal Government’s N720 billion domestic borrowing plan for the second quarter.

This disclosure is contained in a schedule titled, ‘FGN Bonds Issuance Calendar for the Second Quarter, 2022’, and issued by the DMO and can be seen on its website.

The DMO in the calendar said that it would on April 25 open a new, 2032 FGN bond, valued at between N70billion to N80billion, with a tenor of 10 years. The bond is expected to have an interest rate of 13 per cent per annum.

  • On April 25, the DMO will re-open a 2025, 2-years, 11-month FGN bond valued at between N70billlion to N80billion, with an original tenor of 7 years and an interest rate of 13.53%.
  • Also on April 25, the DMO will also re-open a 2042 FGN bond on the same date, valued at between N70billion to N80billion.
  • The calendar shows that for May 16, the DMO will re-open a 2025,  2 years, 10 months FGN bond, valued at between N70billion to N80billion, with an original tenor of 7 years and an interest rate of 13.53% per annum.
  • On the same date, the DMO in the calendar said that it will offer a new, 2032 FGN bond valued at between N70billion to N80billion, with a tenor of 9 years, 11 months, and an interest rate of  13%.
  • Also on May 16, the DMO will re-open a 2042 FGN bond for subscription, valued at between N70billion to N80billion, with a tenor of 19 years, 8 months.
  • On June 20, the DMO will re-open an April 2032 FGN bond, valued at between N70billion to N80billion, with 19 years, 7 months tenor.
  • The DMO would also re-open March 2025 FGN bond, valued at between N70billion to N80billion, with a 2 years, 9 months tenor.
  • Also, June 20 will witness the re-opening of a 2042 FGN bond, valued at between N70billion to N80billion.

What you should know

  • This is coming at a time serious concerns have been expressed by Nigerians, experts and multilateral financial institutions over Nigeria’s rising debt profile, which was put at N39.55 trillion as at December 2021.
  • This DMO bond issuance will likely increase the country’s debt stock by another N720 billion in the second quarter of the year.